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, Avacta, Cadence, GCM, GB Group, Insig AI, ImmuPharma, Northern Bear, Pulsar, Tertiary, Tap, Uru, UK Oil and Gas.
In this market update I run through the major indices, gold and crypto, then dive into the small-cap stories catching my eye this morning. My take is technical-first: I’m watching RSI 50 behaviour, the 50- and 200-day moving averages, and rising trend channels to judge where momentum is likely to take us in October.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Quick market overview
Broad picture: risk-on sentiment has pushed the FTSE to new highs to kick off October, DAX is stuck in a tight range, the Dow needs to defend the 50-day moving average, Bitcoin is trading either side of its 50-day line, and Ethereum remains in consolidation. Gold has been strong on geopolitical risk talk and is probing the top of its channel.
FTSE 100
The FTSE has celebrated the new month with a move to fresh record highs after bouncing off RSI 50 and the rising 50-day line (around 9,200). An end-of-day close above the old high (9,357) would clear the way toward the top of the rising trend channel near 9,540 — a reasonable October target if momentum holds. Domestic issues and headline risk (US shutdown, etc.) could slow things, but for now the index is behaving well.
DAX
DAX remains range-bound between the April channel floor and the 50-day line. A decisive break above the 50-day (around 23,900) would open the door toward the channel top (~25,800), probably by late November rather than end-October. The downside looks shallow — channel floor roughly 23,400, worst case a drop to the 200-day at ~22,900. RSI is back above neutral 50, but the 50-day MA is the key level to monitor.
Dow
Futures weakness overnight put some pressure on the Dow. Support to watch is the 50-day MA (~45,200); while that holds I’m still looking for a push toward the rising channel top from last May (about 47,800) by month-end. US shutdown headlines could of course delay this move.
Cryptocurrencies
Bitcoin
Bitcoin is oscillating around its 50-day moving average and is currently just above that line (113). The immediate resistance zone is around 118; clearing that in early October could lead to a run toward the top of the rising trend channel, near 132 by month-end in a best-case scenario. The downside line-in-the-sand is the channel floor 109, with a test of the 200-day (104) being the worst-case scenario — unlikely but possible if momentum collapses. The RSI 50+ rebound is a constructive leading indicator.
Ethereum
Ethereum remains disappointing relative to Bitcoin — it’s consolidating between the channel floor (3,890) and the 50-day (4,390). I want to see ETH stay above the psychologically important 4,000 level and regain the 50-day over the coming days. RSI is still below neutral 50, which keeps the risk of another retest of support alive.
Gold
Gold hasn’t put a foot wrong recently. Fears around a US shutdown lifted it to the top of the channel (around 3,870) — we actually hit that zone. If that area clears, the next technical target heads toward the 4,170–4,180 area (end of next month projection). On the downside, recent support sits around 3,700–3,800; staying above ~3,800 keeps the bullish case intact.
Small-cap stock highlights — technical setups to note
Below are the stocks I’m tracking today. I focus on clear technical cues: end-of-day closes above resistance, multi-bounces off a rising 50-day MA, and RSI 50 rebounds — these features often precede stronger moves in small caps.
- Avacta Group; Yesterday the shares were 55p and we saw the end-of-day close through 56p. Today gapped higher — the chart shows a rebound above the rising 50-day MA and a double RSI uptrend bounce. While above the recent gap at 60p (EOD close), a stretch target is 75p by the end of October.
- Cadence Minerals; After a fundraising and a bit of volatility, Cadence has recovered: a gap down yesterday then an EOD close back above the 3.9p target. If the stock sustains that, a retest toward 6p is the next call, with RSI staying above neutral 50 as the momentum confirmation.
- GCM Resources; Suffered a dip below 5p in August but has strengthened since. As long as we trade above about 7–7.5p, the chart looks constructive. Minimum upside target is 10.25p (a resistance projection from 2022) and you could nudge that toward 11p by month-end. Multiple RSI 50+ rebounds and support above a rising 50-day MA bolster the bullish case.
- GB Group; (the “normally boring” stock) A couple of RSI bounces around neutral 50 and a lift off a rising 50-day MA hint that we might get a gap-fill up towards the June gap (270p) if momentum holds. That’s a punchy call for the month, but valid while price remains above the 50-day.
- Insig Ai Ord; The shares gapped up and bounced off the RSI 50 zone; both the 50- and 200-day MAs are rising. There was a deep drop below 20p last month but we’ve seen a solid bounce. Above recent resistance at 27p (EOD), the channel top sits near 45p — a near-term target for next month. Key support area is around the rising 50/200-day (22p).
- ImmuPharma; After my interview last month the shares ran to 18p. More recently we saw an RSI 50 rebound and the stock has moved above previous targets (11–12p). A retest of 18p is on the cards; best-case next-month ambition is 30p, though that’s a stretch and depends on catalysts.
- Northern Bear; Gapped through resistance and has already hit several targets this year (up 80% YTD). The stock is trading within a rising trend channel; while above the 50-day MA (96p) the top of the channel points toward 120p by month-end.
- Pulsar; Pulsar’s helium discovery created a bear-trap reversal and subsequent gap-ups. Currently it sits in the middle of its range; if the old resistance at 28p holds as support (EOD close), the channel top is around 36p. Traders will likely take profits near resistance, so watch 28p as the support pivot.
- Tertiary Minerals; This one’s been a difficult child, but we hit the initial target (0.065) after the September gap. Above the short-term breakout level (0.029) the next technical target is 0.09. Fundraises are always a risk here, so treat upside projections cautiously.
- Tap Global; Looks like it may finally be delivering upside. The initial target at 3.66p is the near-term hurdle — clearing that could take us to around 5.5p by the end of next month. A close above recent resistance at 2.9p remains the important confirmation level.
- Uru Metals; shows a turnaround with bullish divergence in RSI and a bounce above broken resistance at 5.5p. If momentum continues, a retest of the March spike near 10p is conceivable by month-end.
- UK Oil & Gas; I was initially sceptical about this one returning to form, but today the stock is firing: earlier targets (0.028 and 0.033) have already been hit and the next major resistance sits 0.05. Staying above 0.03 is the constructive view; further upside is possible if operational updates and RNS momentum continue.
Technical themes and what to watch next
Across markets and small-caps the same technical patterns keep showing up:
- RSI 50 bounces are meaningful as leading indicators for a lift in momentum — multiple RSI 50+ bounces are especially constructive.
- The 50-day moving average remains the short-to-medium term pivot. Holding above the 50-day keeps the bullish case intact; falling through it often brings tests of the 200-day.
- Rising trend channels provide near-term targets and risk levels: channel tops give realistic upside projections; channel floors and the 200-day give downside anchors.
- Watch headline risk (US shutdown, macro data) for sudden shifts in risk sentiment that can invalidate technical setups quickly.
Bottom line
October has started with a constructive bias for equities (FTSE hitting new highs), gold benefiting from geopolitical headlines, and Bitcoin showing bullish technical signs after an RSI 50 rebound. Ethereum remains the weak link in crypto. For the small-caps I highlighted, the story is all about confirmation — end-of-day closes above recent resistance, holding above the 50-day MA, and repeat RSI 50 rebounds. Those signals will tell you which names are ready for the next leg up and which are at risk of a pullback.
“Key levels to watch: FTSE 9,357 (old high) / 9,540 (channel top); DAX 23,900 (50-day) / 25,800 (channel top); Dow 45,200 (50-day) / 47,800 (channel top); Bitcoin 118 (resistance) / 132 (channel top); Gold 3,870 (current top) / 4,170–4,180 (next target).”
That’s it for today — more updates tomorrow as price action develops and I check whether these technical scenarios play out.
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.
