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, CapAI, Cizzle, Fusion Antibodies, Gana, Hemogenyx, Technology Minerals, Predator, Rightmove, THG, Thruvision, TPX.
The FTSE 100 is holding up surprisingly well despite the carnage in Far Eastern markets. One rule of thumb that has served me over the past 30 years is that Asian weakness does not automatically dictate what happens in the West. For now, the UK index is making that point rather neatly.
The charts don’t send a uniform message, though. The FTSE has improved, the DAX remains rangebound, and the Dow has produced a double technical warning. Cryptocurrencies are testing important support, while the small-cap market offers everything from convincing recovery setups to the rather less appealing prospect of catching a falling knife.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
Stock Market Indices: FTSE Strength, DAX Consolidation and Dow Risk
FTSE 100: A Break Above Resistance Opens Up 11,000
The FTSE 100 has pushed through its 50-day moving average at 10,714. That is also roughly where the troublesome resistance line running from July sits, so the move clears two obstacles in the same area.
An end-of-day close above 10,714 keeps the focus on the top of the rising trend channel stretching back to March. That gives an upside objective of 11,000.
If the breakout fails, the first meaningful downside reference is 10,600. That area combines initial September support with early October resistance. At this stage, I would not be looking for anything lower.
The relative strength index, or RSI, has also bounced above its neutral 50 level. Despite the weakness elsewhere in the world, the FTSE chart looks quite constructive.
DAX: Still a Range Trade
The DAX is trying to break its September resistance line at 25,300. An end-of-day close above that level would bring the 50-day moving average at 25,700 into play, but I would not look much further than that for now.
This remains a rather dull market, boxed in between two major moving averages:
- Lower boundary: the 200-day moving average around 24,800.
- Upper boundary: the 50-day moving average around 25,700.
Until that structure changes, the chart is more about negotiating a range than anticipating a substantial breakout.
Dow: Two Sell Signals Keep the Pressure On
The Dow has failed below a falling 50-day moving average, while its RSI has also failed at 50. That is a double sell signal, and it keeps the downside scenario firmly in place.
The first objective is the floor of the rising channel from April, around 50,800. Beyond that, the 200-day moving average at approximately 50,400 is the next reference. I am not anticipating anything worse at this stage.
To improve the picture, the Dow needs an end-of-day close above its 50-day moving average at 52,500. That would reopen the route towards the August highs and the year’s highs.
Bitcoin and Ethereum: Support Levels Under Pressure
Bitcoin: 81,000 Is the Immediate Test
Bitcoin has slipped despite news that The Smarter Web Company has bought more of the cryptocurrency. The price traded below its 50-day moving average around 81,000 during the session.
Provided there is no end-of-day close below that moving average, a retest of September and October resistance at 87,000 remains possible.
The difficulty is momentum. RSI is around 45, well below neutral, which on its own would argue for a decline towards the post-August support area at 75,000. That is the downside reference for the current setup.
In other words, the moving average is still offering Bitcoin a chance to recover, but the momentum reading is not especially encouraging.
Ethereum: Already at the Floor of Its Range
Ethereum looks weaker than Bitcoin. It has already returned to post-August support around 2,350, effectively reaching the equivalent of Bitcoin’s 75,000 support zone.
An end-of-day close below 2,350 would expose the 200-day moving average at approximately 2,136. The more favourable outcome would be for Ethereum to hold in the 2,300s and avoid that deeper test.
Gold and WTI Crude Oil: Waiting for a Break
Gold: A Narrow Range With a Downside Warning
Gold has not presented a particularly attractive picture lately, although it is just about holding the uptrend line running from late June. That line comes in around $4,100.
Above it, the immediate challenge is resistance near $4,160. Gold has broken through that resistance line and then faded on several occasions, so another brief move above it would not be enough on its own to inspire much confidence.
For now, the working range is $4,100 to $4,160. RSI in the low 40s adds a cautionary note: while gold remains below $4,160, there is a risk of another test of the sub-$4,000 area.
WTI Crude Oil: Scope to Fill the Gap Towards $99
WTI crude oil is stuck beneath resistance associated with the September gap, around $97. There is support underneath from rising 50-day and 200-day moving averages, but the market still has something of a wait-and-see feel.
If pushed, I would favour an upward resolution. RSI is above 50, and the price is finding support above the rising 50-day moving average. Together, those features support the possibility of a gap fill towards $99 by the end of October.
Smaller-Cap Shares to Watch
- CapAI: Consolidating After the Big Move: CapAI is enjoying something of a lap of honour following its sharp advance in the previous session. The task now is to consolidate that progress. The shares remain above recently broken resistance around 0.46p and above the previous target at 0.53p. While that strength holds, the best-case target line points towards 0.87p by the end of November. It is a continuation setup: the major move has happened, and the question is whether former resistance can now provide a platform for the next leg higher.
- Cizzle: Cheap Is Not the Same as Recovering: Cizzle has fallen out of both its recent range and its rising trend channel. That leaves the shares at multi-year lows and, technically speaking, in a poor position. The first requirement is a recovery to 1.25p before there is much reason to discuss a meaningful turnaround. With the shares below a penny and RSI down around 14, there will inevitably be people tempted by the apparent bargain. But an exceptionally low RSI is not, by itself, a recovery signal. This is very much falling-knife territory.
- Fusion Antibodies: The 6p Area Needs to Be Reclaimed: Fusion Antibodies is another damaged biotech chart. The shares have dropped out of their recent triangle, with the company update effectively acting as a warning. That is particularly disappointing because the chart had appeared to be rehabilitating itself. Instead, the price has slipped beneath old support around 6p and into multi-year-low territory. The immediate question is whether the shares can reclaim and hold 6p. RSI is very low, but, as with Cizzle, oversold conditions do not automatically repair a broken chart.
- Gana Media: A Favourite Recovery Combination: Gana Media offers a much more encouraging pattern: a gap higher off the lows, followed by a move above a rising 50-day moving average. After 30 years of looking at charts, that remains one of my favourite recovery combinations. It brings together a sharp change in price behaviour and an improving underlying trend. While the shares remain above the 50-day moving average, just below 0.1p, the target is 0.25p by the end of November. The hope is for a substantial move higher, reversing the sort of weakness seen in December.
- Hemogenyx: Repeated Bull Traps, but Support Remains: Hemogenyx has produced multiple bull traps around the 200-day moving average at 751p. Attempts to break through that level have not delivered a sustained move. At least the shares have held recent support around 610p and remain above a rising 50-day moving average. That moving average, around 567p, is the key lower reference. For anyone already positive on the shares, the 50-day line may look like a potential entry area. The familiar concern, however, is the risk of further placings. A technically interesting support level does not remove that funding uncertainty.
- Technology Minerals: Gaps Higher Keep the Upside Case Alive: The former Technology Minerals situation is slightly confusing, with a new market code alongside the old name. The chart itself is clearer: there has been a very substantial move since July, including an unfilled gap higher and another upward gap on contract news. Above 0.1p, the next upside reference is old resistance around 0.13p, visible on the chart from 2024. The broader positive stance remains valid while the shares are on the right side of 0.08p. The combination of strong gains and unfilled upside gaps continues to favour further progress.
- Predator: Falling Without News Is Not a Good Look: Predator has suffered another sharp decline, following weakness in the previous session, without an accompanying announcement to explain the move. That absence of news makes the fall notable, but it does not establish a reason for it. The chart is the evidence available: the shares are back at multi-year lows, and both the 50-day and 200-day moving averages are falling. Some may see a bargain-basement opportunity. For me, the combination of fresh lows, consecutive declines and falling moving averages is not a good look. There is no confirmed technical recovery here yet.
- Rightmove: A Bull Flag Points Towards the Gap: Rightmove has developed a V-shaped bull flag and is testing the top of its rising trend channel around 550p. With support coming in above a rising 50-day moving average, a break through that channel ceiling would point to a fresh leg higher. The initial objective is the floor of the overhead gap around 580p. That looks a reasonable minimum upside reference if the rebound continues, potentially over the coming days. The positive scenario remains valid while the shares stay above 500p.
- THG: A Bear-Trap Rebound Gets Some Help From the Update: THG has rebounded after briefly breaking below old March support around 27.25p. That creates a bear-trap setup, with the latest trading statement receiving a positive market response for a change. The accompanying gap higher strengthens the recovery case. While the floor of that gap around 28p remains intact, the target is the top of the range near 36p. The important feature is not simply that the shares have bounced. It is that they have recovered a previous support level and left a fresh gap beneath the price.
- Thruvision: Orders Could Support a Return to 3p: Thruvision has pulled back from its large August rally, but the chart may now be ready for another push higher. The key reference is old resistance from the previous summer around 1.8p. The shares appear to have bounced from that area, giving it a potential new role as support. With multiple orders announced and the prospect of high-profile backing adding interest, holding above 1.8p supports a return towards 3p, potentially by the end of November.
- TPX: A Quieter Uptrend With a 110p Objective: TPX is less dramatic than some of the other names, but the chart has a decent rising trend channel running from February. The shares remain above the channel floor and the rising 50-day moving average, both around 80p. While that support holds, the upside objective is 110p by the end of the year. It is a straightforward trend-following setup: a rising channel, a rising moving average and a defined level beneath which the bullish case would need reassessing.
The Main Distinction: Confirmation Versus Hope
The strongest setups here are those where price action and momentum are working together: the FTSE reclaiming resistance, Gana Media gapping above a rising moving average, and TPX maintaining an orderly uptrend.
At the other end of the scale, very low RSI readings in Cizzle and Fusion Antibodies may attract bargain hunters, but they are not substitutes for reclaimed support or a broken downtrend. The Dow and cryptocurrencies also show why momentum needs to be considered alongside price levels.
A target is conditional, not a promise. The support levels, closing-price requirements and moving averages set out above are what keep each scenario valid.
This commentary is for information only and is not investment advice. Independently research and verify any information before relying on it, 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.
