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, Empire Metals, Fulcrum, ImmuPharma, Jupiter, Mast, Mkango, Quadrise, WeCap, Wishbone.
In this write-up, I run through the key technicals I covered on September 18: major indices, crypto, gold and the small-cap names I’ve been watching closely. Below you’ll find the levels, chart signals and short-term targets I’m watching.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market overview
Overall theme: selective recovery with clear technical levels to respect. We have several RSI 50 rebounds showing early strength in a few markets, and a couple of names that have gapped or are rebuilding after setbacks. As always, the key is where price closes relative to moving averages and channel boundaries — and the ever-present risk of a rug pull that can spoil a clean setup.
“”We’re still on that floor of the channel… hopefully this time the signal will take off.””
Indices
FTSE 100
- Technical signal: a second take on an RSI 50 rebound — normally a continuation / buy signal.
- Support: floor of the channel from June 9,200; 50-day moving average to respect at 9,147 (end-of-day close basis).
- Resistance & targets: record high at 9,357; upside target 9,500 by the end of next month if momentum continues.
- Risk: a rug pull could drag price back toward the 50-day line — stay above 9,147 to keep the bullish case intact.
DAX
- Recent action: early-week breakdown, but price is trying to re-enter the rising trend channel that began in April.
- Key levels: near-term overhead around 23,600; 50-day line 24,000.
- RSI: around 46 and has been below 50 for most of the last month — that bearish RSI window setup hasn’t produced much downside so far, which is mildly encouraging.
- Observation: market is rather flat/dead at the moment — wait for RSI to get back above neutral 50 for a cleaner signal.
Dow
- Setup: still focused on the rising trend channel from May last year with the mid-term aim of the channel top.
- Support: strong support formation above 45,000 — nearer-term support now about 45,500.
- Indicators: multiple RSI 50+ rebounds in the window — an even stronger leading indicator than a single RSI 50 bounce.
- Target: up toward 47,700 by the end of next month if the uptrend continues.
- Risk: not expecting much below 45,000 or the 50-day line unless a significant rug pull occurs.
Cryptocurrencies
Bitcoin
- Structure: bouncing off a falling 50-day line — that bounce is a bullish sign in its own right.
- Action required: an end-of-day close above 118 (USD implied) would open the door to a move toward 131–132 by the end of next month.
- Support: floor of the channel from Feb/Mar around 110 — that’s the downside to expect on a pullback.
- Indicators: double RSI 50+ rebounds — looks constructive in the RSI window.
Ethereum
- Recent weakness, but price is bouncing off the floor of a rising trend channel formed since July (floor 4,450).
- Upside target: channel top around 5,500 by the end of next month if the rebound holds.
- Near-term support: the 50-day line at 4,307 — avoid any end-of-day closes back below that, we haven’t closed below it since early July.
- RSI: about 57 — in a good place for further recovery.
Precious metals
Gold
- Trend: strong, with a clear victory-run style rally until a small setback yesterday.
- Targets: still looking up to the top of the channel near 3,845 by the end of next month (had hoped for sooner but yesterday’s action delayed it).
- Key level: staying above 3,600 keeps the bullish case intact.
Small-cap picks
Below I summarise the micro and small-cap setups I discussed. Targets are short-term (generally “by the end of next month”) unless noted, and I call out the moving-average or channel levels that invalidate each bullish case.
Empire Metals
- Action: regrouping after a fall (end of stage one on the London curve).
- Support: bouncing off the floor of a rising channel from January around 34p.
- Target: initial resistance around 50p (previous support on the way up / resistance on the way down).
- Risk line: no end-of-day closes back below the 50-day line (38p) to keep the recovery story alive.
Fulcrum
- Pattern: V-shaped bull flag and a break above the 200-day line (5.7p).
- Momentum: 50-day line is rising and we’ve had RSI 50+ rebounds — strong price action with many days opening low and closing high.
- Targets: looking up to 10–12p by the end of next month.
- Watch: for the 200-day line to start rising to cement the longer-term recovery.
ImmuPharma
- Context: I interviewed the team recently when the shares were 10–12p; they spiked to 18p then pulled back to 11p.
- Short-term play: above 11p we can expect a pinball move back to 18p.
- Best case: sustained strength above 18p could take the shares as high as 30p by the end of next month (punchy, but possible given recent momentum and the golden cross).
Jupiter
- Break: gapped up above a rising 50-day line.
- Resistance: recent resistance around 132p — clearing that opens the path to 170p.
- Comment: interesting chart gap — wondering what fundamental news might underpin further upside.
Mast
- Background: a big RNS knockdown recently; the technical mantra has been a full recovery back to pre-RNS levels.
- Current: riding above the 50-day line and up to £1.
- Near target: £1.31 to start, but the larger structural target is back above £2 if the recovery continues.
- Trade approach: expect a cork-in-the-water rebound while price stays above the 50-day line.
Mkango
- Reason for move: shares rose after a fundraise — a constructive development when it can be done successfully.
- Structure: rising channel from February with the channel top toward 45.00p.
- Requirements: need an end-of-day close above the 50-day line (36p) and RSI above 50 to confirm the next leg.
- Risk: sustained close back below 30p would undermine the recovery.
Quadrise
- Key level: must hold above the 200-day line (around 4.25p).
- Target: up to 5.75p by the end of next month, aligning with the top of the January gap.
- Note: patience required — yesterday’s spike and reversion shows volatility.
WeCap
- Progress: slow to take off; some sellers have used rallies to exit.
- Trigger: staying above 2.75p supports a move to the next resistance near 3.9p (the April 2022 level).
Wishbone
- Technicals: mid-move consolidation with RSI comfortably above neutral 50 and price above both 50- and 200-day moving averages.
- Trigger and target: a clearance above 1.6p would likely kick off a move to 2–2.1p next month.
- Keep an eye on volume with any breakout.
How I’m trading these signals
I treat these as technical setups with defined invalidation points (50-day or 200-day closes, channel floors). That gives me clear trade management: entry on confirmation (RSI 50 rebounds, end-of-day closes above key levels), stop under the invalidation line, and a target in the region I’ve outlined. Micro-cap names can be fast and volatile — expect pinball moves and use appropriate position sizing.
Summary
There are pockets of strength across larger indices (notably the Dow) and supportive RSI signals on Bitcoin and some small caps. Gold remains in a healthy uptrend, while a handful of small-cap charts (Fulcrum, Jupiter, Mast, Mkango) present clearly defined risk/reward if price respects the moving averages and channel boundaries. Always watch end-of-day closes and be ready for a rug pull — technicals give us guidance, not guarantees.
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 considered 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.
