Zak Mir takes a charting look at some of the most closely followed small caps on the London Stock Exchange. Today’s charts are the FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, WTI Crude Oil, Acuity, Blackbird, Buccaneer, Chariot, Diaceutics, Gelion, Huddled, Intercede, Jersey, Ocado, Oxford Biomedica, Reveille.
With 19 October marking the anniversary of the 1987 crash, it is a sensible moment to be on our toes. That does not mean expecting a repeat. It means keeping support levels in focus rather than assuming every dip will take care of itself.
The levels below reflect the chart setups on 19 October. Targets for the end of October, November or December are conditional technical scenarios, not promises.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
Stock Market Indices: Moving Averages Set the Tone
FTSE 100: Holding 10,714 Keeps the Upside Open
The FTSE 100 briefly broke through the mid-September resistance around 10,820, only to slip back again. The immediate question is whether the 50-day moving average at 10,714 can provide support.
While the index stays above that line, the preferred scenario remains a move towards the upper boundary of the rising channel from March. That would take it through 11,000 and into record-high territory, potentially by the end of November or sooner.
A break below the 50-day line would change the picture. In that case, the lower boundary of the March channel, around 10,460, becomes the next downside reference.
The relative strength index, or RSI, is in the upper 50s, which leaves it reasonably positioned for further progress if support holds. For context, RSI is a momentum indicator; the neutral 50 level is a useful reference throughout these charts.
DAX: A Less Comfortable Setup
The DAX is on the wrong side of its falling 50-day moving average at 25,700. That is not a particularly attractive combination.
The first level to hold is around 25,300, where a resistance line drawn from September is being tested as support. If that gives way, attention shifts to approximately 24,900, where the floor of the rising channel from April meets the 200-day moving average.
The constructive scenario is for 25,300 to hold and the index to recover towards 25,700. Until then, this remains a market trying to repair its position rather than one displaying convincing upward momentum.
Dow: A Deeper Dip Could Offer a More Comfortable Setup
The Dow has failed at its falling 50-day moving average around 52,460. Below that, there is scope for a test of the channel floor at 51,000.
An intraday sweep towards the rising 200-day moving average at 50,400 is also possible. From a charting perspective, that could be a more comfortable area for a potential long setup than the current struggle around the falling 50-day line.
The RSI is still just above neutral, at roughly 52. That suggests there may be some restraint on the downside, even though the price action leaves room for a pullback.
Cryptocurrencies: Support Tests Replace the Expected Breakout
Bitcoin: $81,000 Is the Immediate Line to Hold
Bitcoin has been more difficult than its earlier setup suggested. The expectation at the end of September was for a cleaner move towards the top of the channel at $96,000. Instead, the market has hesitated and returned to test the 50-day moving average around $81,000.
While that support holds, the initial objective is a retest of $87,000, ideally by the end of October. The best-case scenario remains a move to $96,000 by the end of November.
If the 50-day line breaks, the downside reference is $75,000, the support area established during August and September.
The RSI is bouncing around an upward trend line, but there is a caveat: that line has needed redrawing several times. It therefore deserves less confidence than a cleaner, more consistently respected momentum trend.
Ethereum: The Post-August Range Is Being Tested
Ethereum is near the floor of its post-August trading range, around $2,360. The immediate requirement is for that level to hold.
A successful defence would leave room for a move towards the top of the range at $2,600 in the near term, potentially before the end of October. A stronger outcome would be a return to September resistance around $2,800 within the same period.
Below $2,360, the risk is a test of the 200-day moving average around $2,144. That would do considerable damage to the recovery established after August, rather than simply representing another modest dip within it.
Commodities: Gold Struggles While Crude Holds Firm
Gold: The Moving Averages Still Argue for Caution
Gold is trying to break a resistance line running from August. The difficulty is that several versions of that line have already appeared promising before the market failed again.
A test of the rising support line from late June, around $4,110, cannot be ruled out before any stronger recovery. The best-case upside reference is the 50-day moving average at approximately $4,323.
The momentum backdrop is not especially encouraging. RSI remains below neutral 50, while the 200-day moving average is also falling. On the moving-average setup alone, the risk is that gold rolls over and heads below $4,000.
There may be room for a rebound, but this is not yet a chart offering much reassurance.
WTI Crude Oil: $99 Holds the Key to $107
Crude oil looks stronger. The immediate focus is the top of the price gap at $99, which the market is currently holding above.
As long as that remains the case, the chart stays on course for a move towards the upper boundary of the rising channel from June, around $107.
If $99 fails, the more restrained scenario would be a test of the bottom of the gap near $97 before another attempt higher.
Unlike gold, crude has the backing of rising 50-day and 200-day moving averages. The 50-day line is around $91.41, reinforcing the broader upward trend.
Smaller-Cap Shares to Watch
- Acuity: Finally Showing Signs of Staying Up: After a long spell in the wilderness and a particularly unpleasant bear run from 2022, Acuity is beginning to look as though it can rise and hold its gains. A golden cross last month, followed by a recent unfilled upward gap through resistance, gives the recovery a more encouraging foundation. Initial objective: around 1.75p, potentially by the end of October. Best-case objective: approximately 2.2p by the end of November, matching resistance encountered on the way down in 2025. The important change is not simply that the shares have bounced. It is that the breakout has so far avoided being immediately unwound.
- Blackbird: Above 3.2p, the Next Reference Is 5.25p: Blackbird has continued its strong run following the company interview earlier in October, when the shares were around 1.75p. The first objective at 2p has been cleared, followed by the second around 3.2p. Above 3.2p, the next chart reference is post-2025 resistance near 5.25p. That is a potential target for the end of November or sooner. Given the strength of the move and the enthusiasm surrounding the company’s inclusion in Google Chromebook Perks, even the end of October is a possibility if momentum continues.
- Buccaneer: An Attempt at Rehabilitation: Buccaneer has not been an easy situation for a long time, but the chart is attempting to rehabilitate itself. The shares are now above a rising 50-day moving average. Recent candles have been constructive, opening near their lows and closing near their highs, while the latest upward gap remains unfilled. While the price stays above 0.1p and the 50-day moving average, the objective is approximately 0.16p by the end of November.
- Chariot: Consolidating After the August Rally: Chariot appears to be in a mid-move consolidation following its sharp August advance. That is a more constructive interpretation than assuming the rally has simply run out of steam. The upper boundary of the channel points towards 4p by the end of November, particularly while the shares remain above recent intraday support at 2.9p. A double bounce in RSI around neutral 50 adds encouragement. Momentum has so far found support where it would ideally do so within an ongoing recovery.
- Diaceutics: A Strong, Step-by-Step Advance: Diaceutics may not attract the attention of some of the other names here, but its chart is making a fairly clear statement. The advance has developed in steps, with a strong progression and what looks like a proper breakout. Above recently broken resistance at 194p, the objective is the top of the channel around 255p, potentially by the end of November or sooner. A golden cross at the beginning of October provides additional support for the bullish interpretation.
- Gelion: A Second Upward Gap Suggests Improvement: Gelion has responded to positive news with a gap higher from the lows around 13.25p. Above that level, the recovery objective is the top of the falling trend channel near 20p, ideally by the end of November. This is the second upward gap during October. That matters because it suggests the improvement in the chart may be broader than a response to one announcement. After a difficult period, there is at least the outline of a more credible turnaround.
- Huddled: The 200-Day Average Is the Next Hurdle: Huddled has been one of the better performers in this group, gaining roughly 40% over the past month. The earlier constructive signal was the shares rising above a rising 50-day moving average around the 0.5p area. From that zone, the price has now nearly doubled. The immediate barrier is the 200-day moving average around 0.98p. A move above it would open the way towards post-March resistance at 1.3p by the end of November.
- Intercede: An Upward Gap Within a Rising Channel: Intercede has gapped higher within the rising trend channel established in March. The move suggests the advance may be accelerating rather than merely continuing at the same pace. The objective is 155p by the end of November, provided recent intraday support around 130p holds. RSI has stayed above neutral 50 since the beginning of September, including during dips. That is a useful sign of persistent underlying momentum.
- Jersey: A Rising 200-Day Line Improves the Setup: Jersey can be a volatile and difficult situation, and that characteristic has not necessarily disappeared. What stands out now is the sharply rising 200-day moving average around 108p. While the shares remain above that line, there is scope for a move towards the top of the range near 140p by the end of November. If nothing else, the proximity of the moving-average reference provides a clearer way to assess the potential reward against the support level.
- Ocado: Clearing 320p Would Open More Room: Ocado appears to be climbing a wall of worry, consolidating around the initial resistance for the year near £3. The next important hurdle is 320p. There is relatively little chart resistance between that level and £4, making £4 a possible objective by the end of December if 320p can be cleared. The rally began with an unfilled upward gap and a golden cross, giving it a good technical pedigree. Ideally, the shares remain above recent support at 280p while working towards the next breakout.
- Oxford Biomedica: A Recovery That Still Needs Help: Oxford Biomedica rallied well after the shares were highlighted around 460p in September. The current question is whether that recovery can extend. While the price remains above the falling 50-day moving average at 491p, there is still a chance of filling the overhead gap towards 577p to 580p by the end of November. However, both the 50-day and 200-day moving averages are falling. That makes this a less convincing technical setup than some of the stronger names in the list. To pull a rabbit out of the hat, the shares may need help from a particularly strong fundamental update or merger and acquisition activity. Those are possible catalysts, not developments to assume will occur.
- Reveille: 16.75p Is the Next Breakout Test: Reveille has already enjoyed a sharp move following the appointment of Mike Pompeo, with another appointment announced on 19 October. The next requirement is a break through 16.75p. That would bring the next objective at 26p by the end of November into focus. Ideally, the shares hold above 14p while building towards that move. Unlike some of the recovery situations here, this is a chart that has already demonstrated considerable momentum.
The Common Thread: Let Support Do Its Job
The strongest setups in this rundown share recognisable features: rising moving averages, upward gaps that remain unfilled, and momentum holding above neutral. Crude oil and several of the smaller company shares fit that description.
The more difficult charts are those trying to recover beneath falling moving averages. The DAX, Dow, gold and Oxford Biomedica all have obstacles to overcome, even where a rebound remains possible.
The upside targets only remain useful while the supporting conditions survive. Bitcoin needs its 50-day line to hold, Ethereum needs to defend its range floor, and the equity breakouts need to retain their nearby support. Those are the practical reference points that separate a constructive setup from a hopeful one.
This material is for information only and is not investment advice. Independently research and verify information before relying on it for an investment decision, and seek professional financial advice where appropriate. Vox Markets is not regulated under UK financial services law.
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.
