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, Eco, Fragrant, Genincode, GS Chain, Hot Rocks, Hamak, Mirriad, Medpal, Shearwater, Sulnox, Tap, Westmount, and Zenith.
Markets continue to favour those who watch price structure and momentum more than headlines. Below is a concise, chart-focused run through the key UK and international indices, crypto, gold, and a selection of smaller listed names where clear technical setups are emerging. Where possible I note the moving averages, RSI behaviour and the near-term levels to watch.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The FTSE looks like a mid‑move consolidation or bull flag sitting above a rising 50‑day moving average, a constructive place to be. Momentum is healthy with the RSI above the neutral 50 level.
- Upside target: the top of the channel near 10,000, possibly by the end of the month if momentum holds.
- Downside support: channel floor around 9,500, with the 50‑day line testing near 9,570–9,580 on any pullback.
DAX
The DAX is trying to gain traction with a push toward the rising 50‑day average, and a clear RSI push above 50 would be a constructive sign.
- Near term target: about 24,200 (October resistance).
- Key support: the 200‑day line near 23,500 — staying above this keeps the bulls in the frame.
Dow Jones
The US large‑cap index has broken out of a recent range above the near support level and is heading for the channel top established in February.
- Target: roughly 49,000 over the coming weeks.
- Momentum: RSI has cleared 50 and there is a clear 50‑plus rebound supporting higher prices.
Cryptocurrencies
Bitcoin
After a painful period for some corporate treasuries, Bitcoin is showing signs of recovery. It recently tested the October resistance area and closed above it.
- Resistance broken: around 93,000–94,000.
- Next upside: the 50‑day moving average near 100,000 as a medium term target.
- Support: the rising uptrend line near 88,000 should act as first defence on any pullback.
Ethereum
Ethereum cleared the psychologically important 3,000 mark and shows a convincing RSI breakout — this kind of momentum shift can open up much larger moves.
- Near target: the 50 and 200 day area around 3,500.
- Signal: the July resistance breakout in the RSI window suggests the move may have legs.
Gold
Gold remains rangebound but has clear moving average levels to monitor. A sustained move above the broken October line would help the bull case.
- Longer target noted earlier: 4,600 (ambitious and likely to require a sustained push).
- Immediate resistance: upper 4,200s.
- Support to buy into: the 50‑day moving average near 4,058, with a broken October line around 4,150.
Selected small caps
These are stocks showing clean technical setups: breakouts, gaps, clear moving average support or RSI 50‑plus rebounds. They are inherently higher risk — the levels below are tactical price points, not recommendations to buy at any cost.
- Eco Atlantic – Gapped through the 200‑day for the first time. Above 8.4p with a target toward the top of the range near 12p by month end if momentum continues.
- Fragrant Prosperity – Breaking above a rising 200‑day line with an RSI in the upper 50s. Aim: 1.1p while remaining above the 50‑day at about 0.7p. Broken resistance at 0.75p is now support to watch.
- Genincode – Followed yesterday’s gap with another gap up on decent news. Key to stay above 3p and the 50‑day; if so, a path toward 7p is visible.
- GS Chain – Up strongly and approaching a target area around 0.82–0.83p. Above the 200‑day and the old May peak at 0.65p, with limited resistance until higher pennies.
- Hot Rocks – Rising trend channel with a target near 3p by the end of next month, provided it stays above rising 50 and 200‑day averages. Recent acquisition news may help.
- Hamak – Broke a falling wedge in place since July. Current resistance is near 1.45p, with an upside target of 2p while holding above 1.3p.
- Mirriad– Testing a major resistance area now. A successful break could see moves to 0.14–015p, but beware of one‑day strength followed by selling.
- MedPal – After a post‑IPO slide, showing bullish divergence and a gap through resistance around 6.5p. A move to 9p is the nearer target if momentum holds.
- Shearwater – Strong order flow and rising channel since spring. Needs a 100‑day close above the 200‑day line at about 48p to confirm further upside toward 75p over 2–3 months.
- Solnox – Rapidly approaching an initial target near 80p, with upside to 110p possible into next month. RSI >50 and a gap‑close buy signal are bullish.
- Tap Global – A persistent seller tends to damp rallies near 3p, but the shares remain above the 200‑day line around 1.75p. Expect repeated tests of 3p until supply is absorbed.
- Westmount Energy – Approaching an earlier target near 3.44p. Key support sits at about 2.5p. If the trend continues higher, a channel target near 5.5p is plausible by end of January.
- Zenith Energy – Classic RSI 50‑plus rebound and support above a rising 50‑day moving average. A bounce target as high as 6.4p is visible while staying above the 50‑day.
Trading principles reinforced by current setups
Several repeatable themes are visible across markets:
- Above the 50‑day is constructive. Many of these ideas depend on price holding above a rising 50‑day moving average.
- RSI 50‑plus rebounds matter. An RSI clearing and rebounding from the 50 level often confirms fresh bullish momentum.
- Gaps and 200‑day breaks are powerful signals. Gaps after bear traps and closes above the 200‑day can mark structural changes in sentiment.
Outlook
The coming weeks could deliver punchy moves in both indices and selected smaller names if the technical setups continue to hold. Watch the moving averages and RSI for confirmation, use the support levels as logical stop references, and be patient when a clear break of structure is required before committing more capital.
More updates are likely as new closes and momentum readings come through. Keep charts simple and let price do the talking.
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.
