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, Aurrigo, Diales, Eco (Atlantic), Fusion, Gunsynd, GreenRoc, Kistos, MediaZest, Poolbeg, and Westmount.
Markets are treading familiar trend channels this week. The major indices remain constructive while a handful of small-cap names continue to show clear technical setups. Below, I focus on the important support and resistance levels, moving averages and likely short-term targets to keep an eye on.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The FTSE pulled back but remains above the rising 50-day moving average, so the near-term bias is still bullish. The key levels are:
- Support: 9,612 (50-day moving average), with the channel floor near 9,500 as the worst-case area.
- Upside target: the top of the trend channel – a psychological area around 10,000 by the end of next month if the trend holds.
- Momentum: RSI sits just below 50 but the MA support keeps the setup constructive.
DAX
The DAX is testing the October resistance zone around 24,200. The moving averages are rising, which suggests the market simply needs time to clear that line rather than signalling a reversal.
- Immediate resistance: 24,200 (October high).
- Support: 200-day moving average near 23,500, with the April uptrend line and channel floor close to 23,000.
- Target if resolved higher: a push toward 26,000+ by the end of next month is plausible.
Dow
The Dow is lingering near all-time highs and still holding above the 50-day moving average. The technical picture points to more upside while that average holds.
- Key support: 50-day moving average at around 46,930.
- Channel floor / downside stop: near 46,000.
- End-of-year target: channel top near 49,000.
Cryptocurrencies
Bitcoin
Bitcoin has been struggling with the October resistance line around 91,000. It poked above briefly but has been blocked, leaving an uptrend line and channel to watch.
- Resistance: 91,000 (October line).
- Near-term support: uptrend line around 88,000, with a deeper test at 81,000 if momentum fails.
- Upside trigger: a clean break above 91,000 would open the 50-day moving average target near 98,000.
- Momentum: RSI is below neutral 50, so bears still have some influence until that flips.
Ethereum
Ethereum has broken the October trend line and is holding above the psychological 3,000 level. The move has been more of a controlled consolidation than a runaway breakout.
- Support: 3,000. Failure below that points to the April uptrend near 2,740.
- Resistance / target: 50-day moving average around 3,336 and the broken July RSI resistance line has been taken but not convincingly.
- Outlook: expect a bigger, convincing break rather than a slow grind higher before a sustained trend resumes.
Gold
Gold is consolidating above the broken October resistance line and sitting in a narrow range. The 50-day moving average at 4,083 looks like useful near-term support.
- Support: 50-day MA near 4,083, with consolidation likely above 4,200.
- Upside target: the one-year / November 2024 resistance line approaching 4,600, timing dependent on broader market momentum.
Selected small-cap setups
Several bulletin-board and AIM names are showing clear technical patterns. Below are concise notes on the most relevant names and what to watch.
Aurrigo International
- Run to a potential golden cross with rising 50- and 200-day MAs.
- Above the gap top at 72p targets the top of the channel; 107p is a drawn target by the end of next month if momentum continues.
Diales Group
- Bullish divergence after a November low and a bear-trap rebound.
- Above the gap top at 19p the next range target is 23-24p in the coming weeks.
Eco Atlantic
- Met first two targets at just under 12p and then 15p.
- While above 15p the best-case line suggests a move toward 25p by the end of next month.
Fusion Antibodies
- Reclaimed its 50-day moving average at 13.6p and cleared recent resistance at 15p.
- Above 15p the top of the channel is the next meaningful target, with upside towards 25p possible depending on follow-through.
Gunsynd
- Despite dilution-related noise the chart shows an RSI 50 rebound and a bounce from the rising 50-day line.
- Hold the 50-day and a move toward 0.22p is a feasible target by month end or next month.
GreenRoc
- Slow upward push within a rising channel.
- Target near 4.2p by the end of February while the floor near 2p stays intact.
Kistos
- Rising channel with a top near 227p; recent resistance on the way down at 167p is the sensible stop-loss area.
- Some bullish divergence visible and a gap reversal that supports a recovery scenario.
MediaZest
- Following another debt restructuring theme; a long-dated rising channel sees the top around 0.12p.
- Maintain above 0.09p as the base and the next level up is the channel’s upper parallel near 0.15p.
Poolbeg
- Gapped through a rising 50-day line and the 200-day is now turning up – effectively a golden cross style setup.
- Initial target near 5.7p if momentum continues.
Westmount
- Has touched the previous target at about 3.3p.
- Above that level the top of the August channel points to around 5.25p by the end of next month.
What to take away
Overall, the structure across majors and many smaller names remains tilted toward continuation of existing trends while they hold their 50-day moving averages. Key levels matter – 50-day and 200-day moving averages, trend channel boundaries and obvious October resistance lines will determine whether the next leg is higher or a more meaningful pullback.
Keep stops near the channel floors or the named moving averages and watch for convincing breakouts rather than half-hearted probes. I will update the board as these levels resolve.
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.
