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, Ajax, Conroy, Delta Gold, Ferrexpo, Great Southern, Hydrogen Utopia, Hvivo, Mkango, SEPLAT, Vault.
Below is a practical read on the major indices, cryptocurrencies, gold, and a selection of AIM and small-cap names to watch, with clear levels, targets, and the risks traders should respect.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
How I’m reading the technicals
50-day moving average — a commonly watched short-to-intermediate trend line. Holding above it generally keeps the bullish case intact; a decisive break below raises the probability of a deeper pullback.
200-day moving average — a longer-term trend reference. Staying above the 200-day is constructive for the broader trend.
RSI around 50 — when RSI tests and rebounds from the 50 level (a so-called double bounce), it often precedes fresh rallies. Conversely, failure to hold 50 frequently leads to weakness.
Major indices
FTSE 100
The FTSE has managed to clear the rising 50-day line and is back above the broken resistance near 9,650. That’s an encouraging short-term development and keeps the upside path toward the channel top from earlier this year — about 10,000 — in play by the end of next month if momentum continues.
- Near-term support: the 50-day line and the recent close approach at 9,629.
- Key risk: an intraday rug pull below the 50-day could test the channel floor around 9,550.
- Bias: bullish while above the 50-day; watch for a failed RSI 50 bounce as the main warning.
DAX
The DAX is holding above the broken October resistance near 24,100. That clears a path not just to record highs around 24,700 but potentially to the channel top near 26,300 by the end of next month, provided it stays above the 200-day at roughly 23,500.
Dow Jones
The Dow has tested the top of its February channel and, with momentum intact, could accelerate toward an August resistance projection near 51,200 once it clears the 49,000 zone. The 50-day is currently near 47,000 — staying above that keeps the bullish case alive. A deeper intraday drop could probe 46,100, the 2025 channel floor.
Cryptocurrencies
Bitcoin
Bitcoin bounced off its April uptrend line and is challenging the October resistance area. A clean break toward 93,000 opens room to test the 50-day around 96,000. If momentum falters, expect a re-test of the main 2025 support zone between 75,000–80,000.
Ethereum
Ethereum looks like it fell into a bull trap when it briefly pushed through the 50-day at around 3,300 and then pulled back. Regaining and holding above 3,150 is important for a run toward the 200-day at about 3,564. Failing that opens the door to a test of the April uptrend line near 2,890–2,840 over the rest of December.
Gold
Gold has gapped above its old resistance near 4,270–4,265 and looks set to challenge the channel top near 4,600 by the end of next month. The move has been a bit delayed, but the breakout is now in motion.
Small-caps and AIM picks to watch
The following small-cap names show clear technical patterns: rising 50-day support, channel targets and defined stop levels. These are short to medium-term spec ideas — size positions accordingly and set clear risk limits.
Ajax
- Technical read: bounced above a rising 50-day (5.25p).
- Targets: an initial retest around 7.3p, with a stretch target near 12p by end of January while above the 50-day.
Conroy Gold
- Trigger: a fresh upside leg following drilling news.
- Targets and risk: top of the channel near 16p by the end of next month while above the channel floor just under 9p.
Delta Gold
- Momentum: strong candles and a breakout attempt; a clean close above 20p would be constructive.
- Target: channel top near 28p, with a near-term support/stop around 18p.
Ferrexpo
Momentum has returned with an RSI rebound off the prior target area near 65p. If that holds, upside toward roughly 95p is a reasonable technical objective. The geopolitical backdrop is volatile, so trade with an awareness of headlines.
Great Southern Copper
- Context: a few false starts earlier in the year and a recent fund raise.
- Technical note: best-case target near 5p by the end of next month, but prudence suggests waiting for an end-of-day close through the 200-day (just above 3p) before committing.
Hydrogen Utopia
New market entrants in the renewable/technology space can be volatile. Watch for follow-through on any breakout and use clear stop levels; momentum names here tend to run quickly but can reverse just as fast. Looking for old resitances around 4.25p.
Hvivo
- Pattern: in a falling trend channel but bouncing.
- Target: top of the channel near 6.6p by month end, while remaining above the recent broken resistance around 4.8p.
Mkango
- Support: found on the rising 50-day at around 52p.
- Targets: a charge toward the top of the range near 80p by the end of next month, helped by recent RSI rebounds.
SEPLAT
Showing potential for a larger move. The target area sits near the top of the range at about 330p while recent broken resistance around 267p becomes an important support level to hold.
Vault Ventures
- Context: managed a placing and produced a bear-trap gap reversal above the 50-day near 0.73p.
- Target: the top of the falling trend channel near roughly 1.25p by the end of next month, with the usual caveat to manage position size around placing-related volatility.
Practical takeaways
- Respect key moving averages. Holding the 50-day keeps the short-term bull case intact; the 200-day carries weight for the broader trend.
- Watch RSI 50 bounces. A double bounce around 50 has been a reliable signal for renewed rallies; a failure to hold it is a red flag.
- Define risk before entering. Many small-cap moves are quick and headline-sensitive. Use clear stop levels and position size accordingly.
- Time horizons matter. Several targets are framed as “by the end of next month.” These are short-to-medium-term technical objectives, not long-term valuations.
Markets remain constructive where the 50-day and 200-day moving averages are respected and where RSI action confirms momentum. For the indices, a continuation toward channel tops is possible if support holds. For crypto and selected small-caps, watch the key levels listed above and prepare for quick moves in either direction.
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.
