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, ACG, Anglo Asian, Ajax, Anglesey, Alkemy, Empire, Focus Xplore, Playtech, SolGold, Smarter Web, and Valereum.
Markets are showing a cautiously optimistic tone heading into the end of the year. Several major indices are trading above key moving averages, crypto has bounced from oversold levels, and a handful of small-cap stocks are reacting to M&A chatter and corporate updates. The picture is constructive overall, but there are clear levels to watch for both continuation and potential pullbacks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Big-picture technical overview
Across the board, the technical theme is simple: staying above key moving averages keeps the upside case alive. When the 50-day or 200-day moving average is holding, targets become defined by the top of established channels or previous resistance. Conversely, a close below those averages would warrant a reassessment.
What to watch
- 50-day moving average — a short-to-medium-term trend anchor for many markets.
- 200-day moving average — the longer-term line in the sand; holding above it signals resilience.
- RSI around and above 50 — momentum shifting towards buyers.
FTSE 100
The FTSE 100 is trading within a defined rising channel. The top of that channel sits near 9,950, which is a reasonable end-of-period target while the index remains above the rising 50-day moving average, currently around 9,543.
Near-term actions and levels:
- Support: broken neckline resistance around 9,590 (now acting as support).
- Immediate targets: 9,700–9,750 has already been tested; next target is the channel top near 9,950.
- Momentum: RSI has moved above neutral, sitting just under 54, which is a positive sign.
DAX
The DAX has rebounded nicely and is comfortably above the 200-day moving average, which supports a constructive outlook. The immediate objective is the top of the recent range near 24,800, with a best-case scenario extending to 26,000+ if seasonal strength kicks in.
Key levels:
- Support/floor to watch: the April channel floor around 23,000.
- Upside: 24,800 to 26,000+ if momentum continues.
Dow Jones
The Dow is showing relative strength, having pushed above a rising 50-day line (around 46,721). The top of the channel suggests a potential target near 49,000 by year end.
Watch for:
- Near-term support: a test back toward 45,700 would be the downside scenario that keeps the trend intact.
- Momentum: RSI approaching the high 50s is signalling a continued run higher if sustained.
Cryptocurrency: Bitcoin and Ethereum
Bitcoin
Bitcoin has improved and is trading on the right side of the key 91,000 level, with potential for end-of-day strength through 93,000. The next significant resistance zone lies in the 98,000–99,000 area.
Technical context:
- We bounced from oversold levels not seen since February, which can be a turning point after consolidation.
- If momentum continues, expect the initial resistance test at 98k–99k.
Ethereum
Ethereum has cleared the old April support line near 2,950 and is now eyeing the 200-day moving average around 3,500. A decisive break of the long-standing July resistance would be the catalyst to push through that target.
Scenarios:
- Upside target: 3,500 (area of the 50- and 200-day moving averages).
- Downside risk: a partial retest of November support at 2,622 if momentum fades.
Gold
Gold looks upbeat after a solid RSI rebound. Support sits above the rising 50-day moving average, currently near 4,090. A break above resistance around 4,160 would open the way to the previous November resistance near 4,600.
Trading note: dips toward the 50-day line should be regarded as buying opportunities while the structure remains intact.
Small caps and stock-specific notes
Several AIM and junior names are showing interesting setups — M&A chatter, director buying, and corporate news are creating opportunities. Here are the highlights and the technical levels to monitor.
ACG Metals
ACG is trading in a rising channel and has attracted M&A-related attention. Keep an eye on the 50-day moving average near £10.52. If the deal progresses, a move toward £14 is conceivable, but the primary watch is maintaining the uptrend.
Anglo Asian
This looks like a near deal of equals by market cap with ACG. The stock has been in a rising channel with a top area around 240p. Fundamentals will now have more bearing than pure charting, but technicals were already pointing higher.
Ajax
Ajax has delivered a steady upward move, with the top of the channel around 7.25p as the initial objective. A longer-term projection could take it toward the May resistance projection near 12p if the accumulation continues.
Anglesey Mining
A lesser-covered stock that is showing potential. There appears to be a triple bottom around 0.20p and bullish divergence on the RSI. The immediate technical test is the 50-day moving average near 0.35p, with the caveat that volume and follow-through matter here.
Alkemy Capital
Having exceeded a previous target near 363p, Alchemy looks strong and could reach 450p over the next month if momentum holds. The RSI profile is healthy, featuring multiple rebounds above the 50 mark.
Empire Metals
Director buying has helped the stock attempt to clear the September resistance near 35p. If this breakout holds, the 50-day line around 42p is the next stop. The share price is still well above the 200-day line, which is supportive.
Focus Xplore
Focus Xplore looks to have formed a bear-trap rebound with bullish divergence from the lows. Initial upside expectation is around 0.42p, with an ideal target near 0.05 to fill last month’s gap. Critical support is near 0.03.
Playtech
Playtech has put in a decent technical turn following recent macro developments. The falling trend channel top sits near 308p, which is a clean target by the end of next month while the shares remain above recent resistance at 260p.
SolGold
SolGold has met another objective, having reached a target in the mid-20p zone. The next resistance level to watch is 35p, a 2017 resistance line. Maintaining above the low 20s keeps the bullish case in play.
Smarter Web
Smarter Web has been written off by some, but technicals are changing. There is bullish divergence and a gap through August resistance, which should at least provide short-term momentum. The 50-day moving average near 69p is the longer-term level to aim for, provided dilution is kept in check.
Valereum
Valereum’s recent RNS (US listing and funding) looks impactful. The technicals favour a move toward 14p over the next few weeks, while support near the initial November resistance at 9.5p holds.
Practical takeaways
- Respect moving averages: the 50-day is guiding the near-term trend; the 200-day decides the medium-term bias.
- Use RSI to confirm momentum shifts: rebounds through 50 often precede meaningful upside.
- For small caps, combine technical triggers with any fundamental news such as M&A, director buying, or corporate announcements.
- Manage risk: define stop levels (for many names that means beneath the recent support or moving average) and size positions sensibly.
“Any dips towards that 50-day line currently regarded as buy opportunities.”
Overall, the charts are tilting toward a year-end rally in many markets, but it will be level-dependent and momentum-sensitive. Stay above the key moving averages and the upside targets outlined remain credible; lose them and the risk shifts back toward retests of prior support.
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.
