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, Bezant, Altona, Cobra, Defence, Gelion, Genflow, Incanthera, Strip Tinning, Smarter Web, Strategic Minerals, Tap, Tertiary, WeCap.
I take a charting look across major indices, cryptocurrencies, gold and a basket of bulletin‑board and AIM stocks. Below I summarise the technical picture I discussed on October 20th, highlight key support and resistance levels, and set out the targets I’m watching over the coming weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Top‑line market view
Overall the tone is cautiously constructive: several markets have bounced off the floors of rising trend channels and are attempting to reassert themselves. Where applicable I’ve noted clear levels to watch — breaks below the 50‑day or 200‑day moving averages would increase downside risk, while successful closes above nearby resistance would clear the way to the upper channels.
FTSE 100
The 5,100 area has recovered from its dip to the 50‑day moving average (50‑day 9,288 on the chart I was running) after finding support at the floor of the rising trend channel that began in June. We’ve also seen an RSI 50 rebound, which supports the short‑term recovery thesis.
- Near‑term: reclaiming the old support zone around 9,390 is important — that would argue for a run back toward the top of the channel.
- Target: top of the channel around 9,660 by the end of next month if momentum holds.
- Downside trigger: an end‑of‑day close back below the 50‑day line (9,288) could bring a move toward 9,180.
- Current intraday high noted in the video: 9,354 (or 407 on the shorter scale mentioned).
DAX
The DAX also bounced off the floor of its rising channel (dating from April), with a gap back through the 50‑day moving average — a positive development.
- As long as we stay above the channel floor (23,600) the path of least resistance remains up.
- Best case: a push toward the 26,000 area by the end of next month.
- Worst case (for now): a rug‑pull back to the 200‑day line near 23,100.
Dow
The Dow is trying to break out of a small range bounded by the 50‑day (45,700) and a resistance line from early October (46,200).
- A clean close through 46,200 would open the way toward the top of the broader rising channel (target 48,200 by the end of next month).
- Downside buffer: July resistance / August support sits near the 45,000 handle — staying above there is preferable.
Cryptocurrencies
Bitcoin
Bitcoin surprised some of the doomsters with a bounce: it found support at the floor of the rising trend channel (from February) and is holding above the 200‑day line.
- Key levels from the chart: floor $103,00 200‑day $107,00 recent resistance $116,00.
- As long as we remain in the channel and above 103,00 look for a retest of recent resistance at 116,00 and potentially the top of the channel toward 134,00 by year‑end (a conservative estimate).
““While we remain in this channel, and remain above 103,00 looking for the top of the channel as high as 134,00 by the end of the year.””
Ethereum
Ethereum split the difference between two feared downside targets. We avoided the August support low (3,340) but also failed to hold the September support (3,840).
- There’s a red uptrend line from April running 3,760 — staying above that keeps the recovery case intact.
- Immediate upside targets: 50‑day $4,288 and then main resistance 4,620.
Gold
Gold experienced a small rug‑pull at the end of last week after a parabolic move, but the pullback isn’t structurally alarming yet.
- Short‑term support: the October initial resistance area around $4,070.
- Best case: the red November resistance slope points toward $4,500 by the end of next month.
Selected small caps — bulletin board and AIM picks
Below I summarise the technical setups I covered on a selection of smaller names. These are chart‑based observations: targets, support lines, moving averages and RSI behaviour. Stops and position sizing should be used — many of these names are illiquid and can be volatile.
Ajax
- Strong recovery — up 20% and trading in a rising trend channel after moving from main market to Aquis.
- Initial target: 7p (ideally by end of this month). Break above that could expose a higher resistance near 12p (May–June parallel).
- Key support: 50‑day line around 4.3p.
Bezant
- Bounced above previous target area (0.07p). Momentum since late August looks healthy.
- Target: 0.12p, possibly sooner than the end of next month.
- Notable: support consistently above the 50‑day line and multiple RSI 50 rebounds since last month — signs of strength.
Altona
- Reached a target just below 2.5p — trading in a top of channel from summer 2024.
- Upper parallel resistance around 4p is a possible end‑of‑next‑month target if the move continues.
- Support/resistance from May–July sits near 2.25p; RSI double rebound around 50 is bullish.
Cobra
- Gapped up last week and remains on a rising trend channel despite low liquidity.
- Top of the channel 7p (an end‑of‑year target) while holding above 4p and the 50‑day MA.
Defence
- Mixed chart picture — neutral overall. There’s an uptrend line in the RSI window and a bear‑trap rebound from below early‑October support (2.25p).
- Top of the channel near 5.75p as a longer‑term target while above the 50‑day (1.84p).
Gelion
- Recently raised funds (£10m) and the shares have rallied — often a positive chart signal when a fundraise is followed by strength.
- Top of the channel: 34p; support on the 50‑day 21p. Two major RSI 50 rebounds observed.
Genflow
- Patent news helped today’s action; repeatedly testing the previous target just below 2.5p.
- Next objective: 4p by the end of next month while staying above recent support at 2p.
Incanthera
- Looks like a now‑or‑never setup for a recovery. We had a gap down/fill and then higher lows with an improving RSI.
- Watch the 200‑day area toward 5.75–6p as a potential end‑November target; top of the channel nominally at 36p while above the 200‑day (24p).
Smarter Web
- Smarter Web (Strate) ground out a decent bounce — some had been overly bearish given the Bitcoin weakness but the stock has recovered with the crypto bounce.
- Initial resistance: 76p; if cleared the 200‑day 99p becomes the next objective. If using a stop, initial support today sits 58p.
Strategic Minerals
- Continuing its multi‑month recovery (a welcome large retracement to the upside).
- Third target is 1p; beyond that 1.3p by the end of next month. Key support near 0.8p.
Tap
- Decent announcement today but persistent selling around 3p remains a headwind (a recurring “in‑house” seller pattern noted in the RNS commentary).
- Initial target: 3.65–3.75p; best case 5.6p. Current technical stance: sell into strength around 3p until that persistent selling stops.
Tertiary Minerals
- Fundraise completed but the chart remains solid — shares have held up.
- Initial target 0.06p, then 0.1p by the end of next month.
WeCap
- Continuing its trajectory toward a US listing. Rising trend channel already hit our prior target (1.8p).
- New target: top of the June‑onward channel around 3.7p by end of next month while remaining above the 50‑day (2.3p). RSI 50 rebound also supportive.
Final thoughts
Technically, many of the charts I cover are in constructive trend channels with clear levels to watch on both sides. For the major indices and bitcoin, staying above key moving averages and the channel floors keeps the recovery case alive. For small caps, the message is selective: pick names with constructive technicals, respect stops, and be mindful of liquidity and persistent sellers on individual stocks.
Thanks for reading — I post daily chart updates and I’ll be back with more commentary tomorrow.
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.
