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, Arecor, Cloudbreak, Genflow, Guardian Metal, Hydrogen Utopia, Light Science, Mkango, Nativo, Nuformix, and Poolbeg.
In this update, I run through the charts I’m watching today — the major indices, gold and crypto, and a selection of small-cap stocks that have caught my eye. Below you’ll find the key levels, what the indicators are saying, and realistic targets and stop areas to keep on your radar over the coming weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market roundup
FTSE 100
- Price action: Respecting the rising trend channel from June; the channel floor is around 9,200.
- Moving averages: 50-day line 9,174; the low yesterday was 9,177 — a rebound above a rising 50-day line tends to be a leading indicator on the upside.
- Resistance: The recent hurdle at 9,260 remains the key line to clear. An end-of-day close above that opens the path to record-high territory (around 93–357) and the channel top near 9,500 by the end of next month.
- Momentum: RSI 55 — within the zone for another leg higher (we’ve had several RSI 50 rebounds recently).
DAX
- Range-bound market: Stuck between the channel floor (23,400) and the 50-day line (23,900).
- Indicators: RSI 45 — neutral-to-slightly-soft.
- Outlook: Nothing dramatic — a little range to trade while we wait for a break of the 50-day or a push back above RSI 50. Worst case a rug-pull to the 200-day line around 22,800.
Dow
- Trend: Heading toward the top of a long-term channel from May last year — target near 47,700.
- Support: 50-day line 45,000 — we’ve mostly stayed above this since early May, so bullish overall.
- Momentum: RSI in the upper 50s — a relatively safe place for bulls.
Cryptocurrencies
Bitcoin
- Chart: Testing the floor of a rising trend channel from late Feb/early March, currently around the 111 area.
- Support levels: Turn-of-month support 107. Worst case a pull toward the 200-day line near 103–104.
- Indicators: We’ve seen an RSI failure below neutral 50 — a continuation signal to the downside while price remains below the 50-day (114).
- Commentary: Surprising that BTC is soft given corporate treasury buying, but the technicals are what they are — watch 114 (50-day) and 107 (near-term support).
Ethereum
- Recent action: Broke below old support around 4,064 and drifted toward 4,000.
- Support: Floor of the rising trend channel sits near 3,920 (also old July resistance).
- Bear case: Below 3,920 opens the door to a deeper retracement toward the August 3,300 support — a nightmare scenario for bulls.
- Recovery: Getting back above the 4,060 zone would cancel the current bearish setup. While above 3,920 the channel still projects up toward 5,300 by the end of next month, but the market needs to get moving.
Gold
- Performance: Near-record highs again (not quite yesterday), riding the top of its channel.
- Targets: Channel top points toward 3,860 by the end of next month, while recent support sits around 3,620.
- Note: The move has been strong — “come up too far, too fast” is a fair comment — but the technicals remain constructive while support holds.
Selected small-cap stocks to watch
Below are the names I highlighted, the technical picture and realistic targets. I state the key levels I’m watching for trade management — stops, triggers and targets.
Arecor Therape
- Progress: Hit our second target 89p after an excellent run.
- Targets: Next area up is the upper parallel 140p (possible by end of November).
- Risk management: Stay bullish while above the resistance-turned-support near 77p on an end-of-day close.
- Fundamental note: Positive company news (a development agreement and interim results) supported the move.
Cloudbreak Discovery
- Action: Championed from the lows — spiked through 0.92p and briefly up to 1.2p.
- Targets: Best-case target from the 2023 spike 1.75p; continue to prefer it above recent broken resistance 0.75p.
Genflow Biosci
- Sector: Benefiting from the 2025 biotech interest.
- Targets: Moving toward the top of last summer’s triangle, up to 2.5p by the end of next month.
- Risk level: Keep stops near the recent resistance-on-the-way-down around 1.6p.
Guardian Metal
- Run: One of the cleanest bull runs recently — currently around 102p with the channel top at 107p.
- Trade rule: Maintain the bullish view while price stays above the latest gap floor at 94p on an end-of-day close.
Hydrogen Utopia
- Setup: Market appears to be catching on — recent break above resistance 1.5p.
- Moving averages: 200-day line near 1.75p.
- Targets: Initial target 2.4p; best-case by end of next month up to 3.12p.
- Notes: RSI and the 50-day are rising; RSI is already flirting with overbought, but the chart looks poised for more upside if it holds above 1.4–1.5p.
Light Science
- Action: After choppy action, a V-shaped rebound is underway.
- Targets: Top of the range near 4.6p by the end of next month.
- Support: On the right side of the 50- and 200-day lines in the 3–4p area; the RSI bounce suggests this could be a stronger move than recent ones.
Mkango Resources
- Trend: Progressing up a rising trend channel from February.
- Targets: Heading towards 55–56p by the end of next month.
- Support: Keep a stop around the sharply rising 50-day line near 36p.
Mila Resources
- Setup: Positive RSI structure; an uptrend line visible in the RSI window.
- Targets: Initial target just over a penny (1p+) possibly by the end of next month.
- Support: 50-day line around 4p is a sensible trading stop; ideally it stays above 0.5p.
Nativo Resources
- Up treand line in the RSI window – we have the intial terget of just over 1p
Nuformix
- Biotech setup: Broke resistance around 0.1p.
- Targets: Looking for moves up to 26p (likely meaning 0.26p or 26 on the chart scale) by the end of November — expecting a spike pattern with double/triple RSI bounces around neutral 50.
Poolbeg
- Setup: Bear-trap rebound from just below the 200-day line (3.75p).
- Targets: Initial target 5p, best-case 7p by the end of next month (7p was prior support on the way down last winter).
- Key rule: Stay above the 200-day (3.75p) to keep the bullish case intact.
How I’m managing trades
- Use moving averages as your first lines for support/resistance: the 50-day for near-term stops and the 200-day for structural risk.
- Watch RSI behaviour around neutral 50 — rebounds above 50 are leading indicators for fresh legs higher; failures below 50 suggest continuation lower.
- Prefer end-of-day closes to confirm breaks (either way) — particularly for gaps and channel edges.
- Set realistic targets and be ready to trim into strength; if key support is lost, respect the stop and reassess.
Conclusion
There’s a mix on the boards today: the FTSE and several small caps look constructive if they hold key moving averages and break near-term resistance, while DAX is range-bound and Bitcoin/Ethereum need to prove themselves above the critical levels. Gold continues its strong run. The small-cap names I covered offer specific setups with clear targets and stop areas — they’re worth watching closely over the next few weeks.
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.
