Zak Mir takes a charting look at some of the most closely followed small caps on the London Stock Exchange. Today’s charts are FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, Abingdon, Bezant, CAP-XX, Catenai, Ceres, Diageo, Hamak, Mindflair, MedPal, Ocado, RHI Magnesita, Smarter Web, Tooru.
The big indices are showing renewed strength, crypto has bounced, gold is trying to reclaim former highs, and a number of smaller UK names are waking up. Below I lay out the key levels, targets and the conditions that keep each bullish setup valid.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The Footsie continues its strong rally. Price bounced off the uptrend line around 9,640 and is now heading toward the top of the June channel near 9,890. Best case I can see is a run up to the red October resistance projection around 9,960 — call it 10,000 by the end of the year.
How could the Footsie not hit 10,000 by the end of the year?
Downside risk: a break below 9,640 opens the old October resistance and new November support at roughly 9,575. Given the setup and an RSI that rebounded well above neutral 50 (around 60), I am not expecting a move much lower right now.
DAX
The DAX bounced off Friday’s low above the rising 200 day line and gapped back through the 50 day moving average. Key short term resistance is the October line at 24,050 — an end of day close above that should see a re-test of last month’s highs near 24,800. The channel top from April points as high as 26,000 by year end.
Support: the 200 day area roughly 23,000 to 23,400. One caveat: RSI is still below neutral 50. An end of day close back above 50 would make the upside case stronger.
Dow
The Dow is less responsive today but remains on a constructive footing after a Friday bounce above the rising 50 day line. Immediate upside target is the 47,500 area with the channel top at roughly 48,300 as a late-year target.
Bear trigger: an early or end of day close back below the 50 day (around 46,400) would spoil the bullish picture.
Cryptocurrencies
Bitcoin
Bitcoin has bounced. The channel floor sits near 98,000 and we are back above the October support around 103. Near-term resistance clusters around the 50 and 200 day moving averages at roughly 110 to 111, which feels like a reasonable target over the next week or so.
Watch the RSI — it is still under 50 (around 46) but did bounce on falling RSI support. If there is a hiccup, I would like to see bitcoin not fall below 104, which was recent broken resistance.
Ethereum
Ethereum has held above the 200 day moving average (around 3,420) after bouncing near the lower edge of a falling channel. Near-term target is the 50 day area (quoted around 395) and the April support/neckline near 3,780 is a likely re-test if momentum continues.
Gold
Gold is trying to get back to previous highs. It bounced above the rising 50 day line and the RSI is back above neutral 50. Price also bounced off the top of the rising trend channel from April near 3,960.
Short term resistance on the way up: 4,160 and, above that, the prior peak at 4,381. A very bullish projection would take us toward a one year resistance line near 4,600 by year end, but that is ambitious. The bullish case stays valid while gold holds above the 50 day (around 3,880 on an end of day close basis).
Selected stocks and small caps
Below are the setups I am watching today. For each, I give the key support level to keep the upside case valid and the target I am watching.
- Abingdon: Nice gap through recent resistance at around 7.3p. Target toward 9.8p by the end of this month. Upside remains valid while above the floor of the gap at 7.3p.
- Bezant: Showing signs of life with support above a rising 50 day line. Target last month’s highs near 0.13p by month end so long as it holds the 50 day.
- CAP-XX: Bounced from the floor of a rising trend channel that started in May. Recent August support sits around 28p. If momentum continues the top of the channel is the logical next target, possibly into January. A conservative trader would wait for an end of day close back above the 50 day line (about 34p).
- Catenai: Anticipation ahead of a web summit (Lisbon, 10 to 13 November) has lifted this one. The stock gapped up through old resistance at 0.61p; an end of day close above that would give a fresh leg higher, potentially retesting April resistance around 0.92p by the end of next month. Maintain bullishness while above the gap floor near 0.55p.
- Ceres Power: Not my favourite company but it has kept delivering on the chart. Several targets have already been hit and the next notable resistance lies above the £4 level. Best case would be a run to the upper parallel of the third target near £5.30 by year end, valid while above £3.50.
- Diageo: A tidy rebound off the lows. Price moved through the 50 day at about £18.22. An end of day close above that points to the 200 day around £19.94 and then toward £20. The gap higher makes further upside tougher, but the bias is positive while the shares stay above £18.
- Hamak: RSI is showing strength with a move above 50, suggesting the low may be in near 1.25p. Even if the shares slip again, a first target is the 200 day near 1.82p to 2p, with a stretch target at the 50 day by year end around 2.6p.
- Mindflair: Breaking through the 50 day and heading for the 200 day. Key resistance at 93p (September highs) needs clearing to reach the top of the range in the 1.2 to 1.3p area. This looks like a 2026 first-half story unless the 50 day stays supportive (around 0.72p).
- MedPal: Still not talking to me, despite the coverage, but the chart is encouraging. Broke the September resistance line near 7.6p and gapped above the 200 day. A near-term target around 9p by month end looks feasible. The RSI is not fully back above neutral 50 yet, but the path is open while the stock holds recent 7p and 7.4p support.
- Ocado: Showing the classic rebound off new lows that market participants often buy into. Initial target is the old support zone near 217p, with scope to reach the 50 day (around 241p) if buyers remain. The shares are on the right side of 2p, and bullish divergence in RSI suggests some buying interest.
- RHI Magnesita: Broken through recent resistance around 21.85. There was an earlier hit at about 23.80. With the gap higher and rising 50 day, there is a path back to the old June support level that sits closer to £27. To keep the bullish case simple: above £22 the stock should be looking at £27.
- SmarterWeb: Those who missed the rally keep talking it down, but the chart just rebounded with an RSI above 50 — a surprisingly strong signal. That suggests enough energy to push to about 76p over the rest of the month, provided Bitcoin and broader market sentiment cooperate. Keep an eye on Friday support at 48p; above that the target is valid.
- Tooru: Gapped higher and is trading above both the rising 50 and 200 day moving averages. The setup points to the top of a broadening triangle from May, with a 4p target next month if the stock stays above the 0.25p area. RSI has flipped above 50 which supports a short term bullish view.
Summary and trade notes
- Indices are constructive. FTSE and DAX look particularly strong with clear upside targets into year end.
- Cryptos have bounced but watch RSI levels and the key moving averages for confirmation.
- Gold is trying to reclaim highs and remains bullish while it holds the 50 day line.
- On the smaller names, stick to the condition that keeps each trade valid. For most that is a specific moving average, gap floor, or support level.
- Always watch end of day closes for confirmation. A single intraday spike means less than a sustained close above or below the key levels.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
