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, Argo Blockchain, Bezant, Catenai, East Star, 80 Mile, Gunsynd, Golden Rock, Kefi, Nuformix, Pensana, Pulsar, and United Oil & Gas.
Below, I summarise the key technical signals, targets and risk levels so you can see what I’m watching and why.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Today’s market overview
Broadly speaking, the major indices are acting bullish, with several clearing important resistance levels and staying above key moving averages. That sets up clear upside targets over the next few weeks, while also giving us well defined places to expect any disappointing pullbacks to find support.
FTSE 100
FTSE is doing what we wanted — heading for record highs. The index cleared the old highs around 9,357 and, while we’d expected 9,560 by month‑end, momentum suggests we could get there even sooner (possibly by next week). Staying above the 9,400 zone keeps the bullish case intact and would open the way to fresh higher targets on leading UK stocks.
DAX
DAX has finally broken the narrow range inside the channel and gapped up through the 50‑day moving average. As long as it stays above the 50‑day (recently near 23,900), the run up to the top of the channel (25,700) looks attainable by the end of the month. The floor of the channel near 23,400 is the obvious downside limit in the short term.
Dow
The Dow is finding intraday support on the right side of 46,000, and the RSI is holding around the 55 level — both bullish signs. That sets a straight line to 48,000 (the top of the May 2024 rising trend channel) by month‑end. Any sharp rug pulls should find buyers by the 50‑day area (45,200), which would likely be a buy‑the‑dip opportunity as we saw last month.
Cryptocurrencies
Crypto charts look healthier — key breakouts and RSI confirmations are in place.
Bitcoin
Bitcoin has broken a neckline resistance at roughly 118k. With that and a break of the RSI resistance (57), the next target is the top of the rising trend channel from late February — roughly 132k — which is a near‑term objective while price holds above the 50‑day line.
Ethereum
Ethereum endured a rougher second half of September but has just cleared an RSI resistance near 56 and the 50‑day moving average (4,390). If it stays above the 50‑day, the top of the July rising channel (5,300) is a reasonable target by month‑end. Any pullbacks should be limited — plan for dips into the 4,000–4,100 area as the likely downside boundary.
Gold
Gold has broken the top of its rising trend channel around 3,860 and is holding the right side of 3,800. If that holds, a one‑year resistance projection near 4,160 is in view by the end of next month.
Small – Caps
Below I cover the small‑cap charts I discussed, the signals I like and the levels I’m watching. Timeframes mentioned are mostly near‑term (by the end of this month or into next month), unless stated otherwise.
- Argo Blockchain — Another spike like July’s is possible. We’ve seen several days of blue candles; the key hurdle is the 200‑day moving average (2.97p). A break through would open a climb toward the top of the rising channel (4.5p). Conversely, a fall back below the 50‑day (2p) would undermine the setup.
- Bezant Resources — The breakout above 0.03 has been decisive. The target is the 2023 resistance projection (0.077) by month‑end, with the important confirmation being that the price has stayed above the rising 50‑day throughout the move.
- Avacta Group – The last dip was above a rising 50 day line.
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Catenai — This one delivered the twin bullish signals we look for: RSI 50 rebounds and consolidation above a rising 50‑day. It’s already cleared the first target (0.5p) and could retest the upper‑50s/0.58 resistance and possibly reach 0.9p by the end of next month while holding above 0.5p.
- East Star Resources — I hadn’t looked closely in a while, but the chart is building well: support above a rising 50‑day and RSI 50 rebounds. The top of the channel looks to be around 2.75p and could arrive by the end of next month.
- 80 Mile — After a strong run last month, we’ve seen a W‑shaped breakout through 0.53. A retest of last month’s resistance (78) is the next objective by month‑end. The RSI 50+ rebound and a prior golden cross add weight to the bullish thesis.
- Gunsynd — Momentum and chatter around this name are building. It’s above 0.16 now, with an initial target near 0.21 and a stretch target of 0.25 by month‑end. A current golden cross (50 over 200) and multiple RSI 50 rebounds point to accumulation.
- Golden Rock Global — Thin chart but forming a rising channel since August. The top of the channel is near 6p; the 50 and 200‑day averages are rising around 3p. Prefer that we don’t drop below recent support (3.25p) for the bullish plan to hold.
- Kefi — A nice recovery from the 0.5p area back in July/August: the shares have more than doubled. The rising channel points to 1.75p by month‑end, provided we stay above the previous target near 1.1p.
- Nuformix — After a strong run into the mid 30s, today saw a slight pullback. The best‑case scenario target I’m watching is 0.50p by month‑end while price remains above the earlier 0.26p level.
- Pensana — Continued grind higher after hitting the first target (110). The upper parallel of the rising trend channel sits near 160, which is the target while we stay above 130.
- Pulsar — A positive announcement yesterday and the shares have comfortably held above the suggested support (28p). With the news and the chart, an initial target near 37p is a realistic near‑term objective while above 28p.
- United Oil & Gas — Caution is warranted with this one (history of sharp sell‑offs and fundraises), but near term the outlook looks constructive: management has aligned with shareholders via performance‑related options, both 50 and 200‑day averages are rising, and we’ve seen a double RSI 50 rebound. A break above 0.18p now looks like a genuine move, with 0.33p by month‑end on the table if momentum holds.
Quick notes on the technical signals I referenced
- 50‑day moving average — Shorter‑term trend line; price holding above it is a bullish sign.
- 200‑day moving average — Longer‑term trend; a “golden cross” (50 crossing above 200) is a bullish confirmation.
- RSI 50 rebound — If the RSI drops to 50 and then bounces, it often signals renewed upside momentum rather than a full loss of momentum.
- Channels and trendlines — Tops and bottoms of channels give practical targets and stop areas for trades.
Final thoughts
Overall the tape is looking constructive across indices, crypto and many small caps. The simplest way I’m managing this is: identify the right‑side-of‑trend level (50‑day/previous resistance), watch for RSI 50 rebounds and golden crosses as confirmations, and keep clear downside levels for risk management. I’ll be watching how these levels behave over the next few sessions — more updates tomorrow.
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.
