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, Blencowe, Cobra, East Star, Greatland, Hardide, Jangada, IntelliAM, Northern Bear, and Valereum.
Quick technical take on the major indices, cryptocurrencies, gold and a selection of small caps showing notable chart setups. This is a concise trader’s checklist: key support and resistance levels, moving average guidance and targets to watch over the next few weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Global indices
FTSE 100
The FTSE is trading near the middle of its rising trend channel established earlier this year. Recent rebound activity has concentrated around the 9,720–9,750 zone. Staying above the 50-day moving average (9,563) is important for keeping the bullish case intact.
- Near-term upside: aim for the top of the channel and the psychological 10,000 mark (punchy by the end of this month; more conservative into next month).
- Key support: channel floor near 9,470 and the 50-day MA.
DAX
DAX is softer, down roughly 1% with the 200-day line acting as the immediate test at about 23,500. A clean end-of-day close above that level would keep the upside attempt alive.
- Immediate upside target: 24,200 (October resistance).
- Downside risk: a drop back to 23,000, which was tested last month.
- Momentum caution: the RSI shows a failure just above the neutral 50 level — not a great look for bulls.
Dow Jones
The Dow remains inside its rising channel from February. As long as price stays above the 50-day line (46,700) the path of least resistance is higher.
- Near-term target: the channel top, roughly 49,000, potentially this month.
- Support to watch: channel floor near 46,000.
Cryptocurrencies
Bitcoin
Bitcoin has retreated to a previous support area around 86,000. That level is critical: a break below it opens the door to a fresh move lower towards the longer-term uptrend line from September, currently sitting around 80,000 and possibly as low as 76,000 depending on how one draws it.
- Support: 86,000, then the uptrend near 80,000–76,000.
- Confirmation for higher prices: a break and daily close above the resistance line from early last month near 91,000.
- Momentum: RSI has failed around the 40 level — a bearish signal until proven otherwise.
Ethereum
Ethereum failed on an October resistance line and is set to retest last month’s intraday low near 2,622. A decisive change in direction requires an end-of-day close above the ~3,020 October resistance line, with the next obvious resistance area near 3,250.
- Downside reference: 2,622 (last month’s intraday low).
- Upside trigger: daily close above 3,020.
- Momentum: RSI weakness around the July resistance level remains a concern.
Gold
Gold has gapped through a resistance line and looks constructive. Holding the broken line around 4,180 and staying above a rising 50-day moving average supports a near-term push.
- Target: looking for ~4,600 by the end of this month while the structure remains intact.
- Support: the former resistance at 4,180 and the rising 50-day MA.
Small Caps
Numerous bulletin-board and AIM-style names are showing clear technical set-ups. Below are selective notes with key levels and targets.
Blencowe
Momentum is strong and the stock is heading toward an obvious target around 11p, which aligns with the top of an April rising trend channel and an older resistance projection.
- Near-term support: around 8.66p.
- Target: 11p.
Cobra Resources
Fresh breakout above the short-term resistance at 3.6p and above the 50-day line. The rising 50-day gives the chart a bullish tilt.
- Break confirmation: above 4p.
- Target: up to 8p by the end of next month (an ambitious call but chart-driven).
East Star
Market reaction to the Endeavor joint venture has been slow to arrive but the chart is beginning to respond. The price has double-tested the initial target area and looks ready for the next leg.
- Initial target tested: 2.9p.
- Next target: 4p by the end of the month if momentum holds.
- Support: recent broken resistance around 2.4p.
Greatland Gold
A neat rising trend channel with strong news flow. The 50-day moving average at £3.75 is the key support to respect.
- Upside target: channel top around £4.70.
- Maintain above the 50-day MA (£3.75) for the bullish case.
Hardide
Contract news has driven the shares to the first chart target. The next upside projection sits higher within the same rising channel.
- Trigger: an end-of-day close above roughly 10–12p should accelerate the move.
- Target: as high as 15p by the end of next month.
Jangada
Looks like a bull flag breakout in the making with a clear W-shaped recovery over the last year.
- Support: keep above 1.5p.
- Target: 2.4p later this month.
IntelliAM
Edging higher inside a rising channel. Both the 50- and 200-day moving averages are rising and recent resistance has been taken out.
- Support: recent area around 105–108p from September.
- Ambitious upside: channel top near 225 by the end of next month while above recent broken resistance around 117–118.
Northern Bear
Having broken strongly higher, the chart has moved from a black rising channel to an accelerated red channel. Momentum suggests further gains.
- Previous channel top: 126p.
- Accelerated channel target: 195p, possibly by the end of January to February.
Valereum
Gap above resistance near 10p has been followed by steady follow-through. The move remains underappreciated by the market so far.
- Short-term targets: first 7.75p (already noted), then 14p.
- Near-term stretch target: 27p by the end of this month while the stock holds above roughly 14–15p.
Technical checklist — what to watch across the board
- 50-day moving average behaviour. Staying above it keeps the bullish bias; falling through it often signals a leg lower.
- Key support and resistance lines drawn from recent highs and lows. Breaks and daily closes matter more than intraday wicks.
- RSI readings for divergence or failure. RSI failures near structural levels have preceded sharper pullbacks.
- Volume and news flow for small caps. Chart setups can accelerate quickly when the market starts to appreciate positive corporate developments.
Keep these levels front of mind. When price respects the moving averages and breaks meaningful resistance on decent momentum, targets become far more credible. Conversely, RSI failures and closes below major moving averages are reasons to tighten risk or step aside.
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.
