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, Bezant, Cadence, Genedrive, Nuformix, PCI-PAL, Sabien, Zenith.
Markets have taken a firm turn to the downside over the past week, leaving a number of key indices and individual stocks sitting on important moving averages and trendlines. The immediate question is whether recent bounces are enough to stabilise the picture or whether the next support zones will be tested. Below is a concise, level-focused rundown covering major indices, crypto, gold and a selection of small-cap setups worth watching.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market overview
Several indices have retraced sharply and are now probing 50-day and 200-day moving averages. A close back above those averages would improve the outlook, but while price remains below crucial November supports, further downside to the nearby channel floors is a live risk. Use the levels below as a guide for risk management rather than precise targets to chase.
FTSE
The index dove toward the 50-day moving average — roughly around 9,502 — and has managed a bounce back above that line. If it holds above the 50-day, the prospects brighten. If not, the likely minimum downside is to the channel floor near 9,415 or the broader 9,400 area. The rising wedge broke its floor near 9,760, and while the market remains below the initial November support at 9,574, downside remains the higher-probability path.
DAX
The DAX has shown a rather weaker structure recently. A two-day island reversal in mid-month was followed by a gap down through both the 50-day and 200-day moving averages. Initial support sits at the floor of April’s gap near 22,600, which could be reached within days. A decisive end-of-day close back above the 200-day near 23,400 would be needed to shift the bias back to the upside. For context, a prior April dip overshot the 200-day by about 1,000 points; currently the index is only about 300 points below that moving average, which suggests a possible turnaround zone around 22,600.
Dow
The Dow has already lost its 50-day line after a gap down beneath 46,600. That opens the risk of a retest of October support at 45,300. Should that level fail, the next major support to watch is the 200-day moving average near 43,800, which has acted as support in the recent past.
Cryptocurrencies
Bitcoin
Bitcoin looks fragile while below the old April/May support around 93,000. If it cannot recover above that level in the coming days, lower targets include 86,000 (floor of the rising trend channel) and a wider channel low around 76,000. The path depends on reclaiming that 93,000 zone as resistance becomes support.
Ethereum
Ethereum has shown relative resilience, finding support around the 3,000 area and an uptrend line from April near 2,950. A recovery target is the 200-day moving average at approximately 3,482 if buyers remain in control above current support.
Gold
Gold has behaved broadly as expected in a risk-off environment — strengthening while equities fall. The market has bounced above a rising 50-day moving average (around 3,956) and generated an RSI 50 rebound, a combination that often signals a new leg higher. The upside projection remains as far as 4,600 while the price stays above the 50-day line.
Selected stocks to watch
With broader markets weaker, a few smaller-cap names stand out for clear technical setups. Levels below are short-term targets assuming the supporting moving averages and channel floors hold.
- Bezant — Bounced off the floor of a rising channel at about 0.07 and closed above the 50-day line. A move back toward 0.10 is plausible while the recovery holds.
- Cadence — A bullish exception in current markets. With both the 50- and 200-day moving averages trending higher and an RSI 50-plus rebound, expect momentum to carry the shares toward around 6.75p while price stays above the recent broken October resistance at 4.3p.
- Genedrive — The market has reacted strongly to expectations of cash inflows, but today’s action suggests “better to travel than arrive” — caution is warranted. Above the channel floor at about 0.9p, a retest of 1.6p is possible.
- Nuformix — Risen sharply without fresh news, having bounced off a rising 50-day line near 0.25p. A retest of earlier highs around 0.5p could come sooner rather than later.
- PCI-PAL — Cleared the 200-day moving average and, if momentum continues, has room to reach the top of a rising channel from March, as high as 62p by the end of next month.
- Sabien Technology — The proposed strategic agreement with COF has helped shares break above the 200-day near 8p. A move toward 13–14p is feasible after a solid end-of-day close above that 200-day line.
- Zenith — Showing signs of a meaningful turn. The shares are back above the 50-day line at 3.44p and initial resistance sits around 4.1p, with a best-case upside target near 7.12p if recent support around 2.75p holds.
How to use these levels
Focus on structure and confirmation rather than exact prices. The moving averages (50-day and 200-day) and channel floors mark the levels where market behaviour will most likely change:
- Use the 50-day as an early barometer of short-term momentum.
- Watch for clean end-of-day closes above the 200-day to confirm a return to bullishness.
- If price breaks the channel floors or monthly supports, expect the next zone of support to be tested rather than an immediate reversal.
“If we remain above the 50-day line actually one would be quite positive about the prospects for the market.”
That captures the simple trade-off traders face right now: hold above the key moving averages and risk is reduced; fail to hold them and lower channel floors become the primary targets.
Summary
Overall, the bias is cautious. Several major indices are testing important technical lines, and a number of smaller stocks are offering clear, tradable setups if their support levels hold. Keep stops tight around the moving averages and channel floors mentioned above. A confirmed close back above the 200-day would change the narrative for the indices, but until then expect pockets of weakness and selective opportunities among smaller caps.
More updates as price action unfolds and fresh closes give clearer directional signals.
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.
