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, B HODL, Europa, Eco Buildings, Genedrive, Oracle, Richmond Hill, Shuka, Tertiary, TM1, Videndum.
In this update I take a chart-driven look across major indices, crypto and a selection of bulletin-board stocks. The focus is technical: where the markets are finding support, key resistance to watch, RSI behaviour, and likely near-term targets. Below I summarise the charts I reviewed and what I’m watching over the coming weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major Indices
FTSE 100
The FTSE has settled into support around the 9,400 area — we were watching 9,420 and the market briefly dipped below earlier in the week but looks to be holding. While we remain above 9,400 the next resistance to clear is 9,480. A breakout there would open a move up toward ~9,640, which is a reasonable target by the end of next month.
Best-case scenario would see the index chase the red May resistance projection toward 9,800, but that looks more like an end-of-year target than a near-term one. The RSI is comfortably in the upper 50s which supports further gains and reduces the likelihood of deep retests beneath 9,400. If we do get a sharp drawdown, prior peaks around 9,357 could act as the first support and the channel floor / 50-day line around 9,277 would be the downside needle case.
DAX
The DAX has used the 50-day moving average as support and bounced above it today — an encouraging, often leading, upside signal. Current level is roughly 24,000 with the RSI around 52. The path of least resistance is toward a retest of the early-month highs near 24,700.
On the downside, the channel floor dating back to April sits around 23,600 and would be the main risk if momentum fades.
Dow
The Dow is attempting to push higher but remains under a line of resistance from earlier this month, roughly 46,400. Yesterday’s attempt to clear it failed — I want to see an end-of-day close above that level to give confidence for a move to 47,000.
Assuming a clean breakout, best-case over the next month would be toward ~48,200 (the top of the May 2024 rising trend channel). The RSI is on the right side of neutral, which helps the bulls’ case.
Cryptocurrencies
Bitcoin
Bitcoin is sitting at the floor of a rising trend channel — testing roughly 110k several days in a row. The missing piece for a decisive recovery is getting back above the 50-day moving average (around 114k) and for the RSI to climb back above neutral 50; currently the RSI is circa 41.
If momentum fails, the 200-day moving average near 107k is the next technical support. For a proper breakout you’d want clearance of the 50-day and then the late-August / September resistance area around 118k.
Ethereum
Ethereum has been disappointing of late but it is still clinging to the floor of a rising trend channel that began in July — roughly just under the current level at ~3,960. A bounce toward the 50-day moving average (about 4,329) is the logical first objective.
For more conservative traders, waiting for the RSI to recover above 50 (it’s about 44 today) provides a clearer signal to re-engage.
Gold
Gold has staged a blow-off type move and is around resistance that stretches back to this time last year. Given the momentum, I’ve sketched a potential fresh upside target around 4,500 by the end of next month (i.e. end of November) if the rally continues above 4,200.
On the downside, hope remains to keep price on the right side of 4,000 and certainly above the recent October record / prior resistance near 4,057.
Selected Bulletin-Board Stocks
Below are the small-cap names I reviewed today with the key technical levels and what I’m watching next.
- B HODL — The stock has been in a falling trend channel since listing. There’s resistance at the top of that channel near 16p; a breakout there would open the path to prior highs near 22p. The RSI has pushed above 50 (about 53) and there’s been director buying recently — that helps the case.
- Europa — Having hit earlier targets, the next objective is around 2.1p after the latest upside gap. Price action has been strong (opens at the low, closes at the high) which is constructive.
- Eco Buildings — Currently enjoying a strong run and has pushed towards our best-case 14p target. Key short-term support to hold is 9.4p on an end-of-day close basis.
- Genedrive — I’ve suggested 2025 could be a revival year for biotechs and Genedrive is showing encouraging technical strength. Recent resistance sits around 0.49–0.52; an end-of-day close above the 50-day (0.55) could open a move back toward the September/August resistance area (targets nearer 0.80). Note the company could still require a fundraise, so factor that risk in.
- Oracle Power — After a strong run last month, the share price regrouped by bouncing off former resistance around 0.032. Current action is back near our previous 0.058 target; clearing that would invite a retest of last month’s peak near 0.10p. RSI has rebounded above 50 which is positive.
- Richmond Hill — Early days, but a potential rising trend channel appears to be forming. While the stock stays above 1p, the upside target in this early pattern is toward 2.2p — possibly achievable by the end of next month if momentum continues.
- Shuka — Shares have closed the gap above the 50-day line and the initial target was 7.3p. If strength continues, a move toward 11p by the end of next month is possible while price remains above September resistance around 5.6p.
- Tertiary — The stock bounced off a prior target near 0.064 and, with RSI sitting in the upper 50s, the chart looks bullish while remaining above that level. Above the recent target the next technical objective is 0.10.
- Technology Minerals — Despite some cynicism about the company, TM1 is clearly trading and has formed a rising trend channel. The top of that channel points toward 0.14, with immediate support at the 50- and 200-day lines near 0.007.
- Videndum — A decent turnaround from the July–August fall: shares have come back to and cleared the 50-day (50p) on an end-of-day basis following an unfilled upside gap. That sets up a short-term target nearer 60p, even if the shares consolidate afterward.
Key Takeaways
- The major indices are showing constructive technicals: FTSE holding 9,400, DAX above its 50-day, and the Dow needing an end-of-day break above 46,400 to confirm higher targets.
- Bitcoin needs to clear the 50-day (114k) and lift RSI above 50 to push back toward ~118k and beyond; Ethereum faces a similar RSI hurdle before a convincing recovery toward the 50-day (4,329).
- Gold’s momentum has opened the door to much higher targets if the trend holds — 4,500 is on the radar by the end of next month.
- Among small caps, several charts look constructive (Europa, Eco Buildings, Oracle Power, Videndum, etc.), but be mindful of company-specific risks such as potential fundraises in the biotech space.
“”While we stay on the right side of key supports, the charts point to higher targets over the coming weeks — but always respect the downside rules.””
Conclusion
Technically, the market tone is cautiously optimistic: indices and several small-caps are holding important supports and the RSI readings support further upside in many cases. That said, watch the defined downside levels for each chart — they remain the quickest way to manage risk if momentum fades.
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.
