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, Caspian, Caledonian, European Metals, Fragrant Prosperity, GS Chain, Genincode, Iconic Labs, Strategic Minerals, and ValiRx.
Markets feel constructive overall, with a few clear levels to respect. The technical picture is a mix of cautious optimism and tidy trade plans: stay long while key supports hold, look for end of year rallies on the indices, and watch for continuation or failure around a handful of decisive moving averages and trend lines.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices: FTSE 100, DAX, Dow
FTSE 100
The FTSE looks like it tried to form a bull flag but has softened a little. The pragmatic view is bullish while price remains above recent support in the 9,600s. A break higher would target an end of year rally toward 10,000. On the downside, the June uptrend line sits near 9,470, and the 50 day moving average around 9,581 should act as logical buy zones on any dips. The RSI sitting just under 54 keeps the technical glass half full.
DAX
The DAX is consolidating between the rising 200 day line at about 23,500 and the 50 day near 23,700. With the 200 day rising and the index inside a rising channel, the bias is upward while it holds above that 200 day line. The next obvious resistance is the October high around 24,200.
Dow
The Dow remains in a clear rising trend channel from February. As long as the index stays above the 50 day moving average near 46,800, upside toward the channel top around 49,000 is a reasonable target by month end. The worst case to watch is a re-test of the June uptrend area near 46,000.
Crypto and gold: Bitcoin, Ethereum, Gold
Bitcoin
Bitcoin has shown a sharp overnight revival. There is a clear resistance line from October around 93,000, which also acted as April and May support. A daily close above that zone opens the path toward the 50 day moving average near 100,000. On the downside, a re-test of the 75,000–80,000 area is plausible, since that range has been the 2025 support band.
Ethereum
Ethereum has finally cleared its October resistance around 3,000. From here look for initial upside to approximately 3,240, with a stronger target around 3,500 where both the 50 and 200 day moving averages currently sit. The RSI has broken a multi-month resistance line, which is a constructive sign. Downside risk points to last month’s support near 2,622, although the ideal scenario is a higher low and continued higher lows from here.
Gold
Gold broke a near-term line around 4,170 after a strong session. The one year resistance projection sits near 4,600 by the end of the month as a best case. The 50 day moving average near 4,049 is the key downside line to protect; staying above the broken October resistance is the constructive read.
Small caps to watch
Several small caps are showing momentum or interesting setups. Below are the key technical levels and near-term targets to monitor for each name.
- Caspian Sunrise: Broke recent resistance at 2.88p. Near-term target around 3.8p with upside towards 4.2p if momentum continues.
- Caledonian Holdings: A V-shaped recovery, bouncing around RSI 50. Sticky resistance to clear is 0.005. A push through could take the stock to 0.01 by month end. Support to hold near 0.004.
- European Metals: Moving higher after news-driven strength. Short-term target 24p while holding above 20p. Avoid a break back under 18p.
- Fragrant Prosperity: Trend lines have been rejigged and a break near 0.74 is occurring. Look for a daily close above the 200 day line at 0.79 before assuming a move toward 1p plus. Maintain support at the 50 day around 0.70p.
- GS Chain: This shell name has rallied through the 200 day at 0.52. Initial target is 0.83, with little resistance until about 1.25p once above 0.80p.
- Genode: Strong announcement sent the shares higher in America. A close above the 50 day at 3p would set up a test of the falling channel top near 4.15p by the end of next month. Keep the 200 day at 2.44p as the immediate downside guard.
- Iconic Labs: The UK-listed stock has cleared its 200 day line and closed around 3.4p. From a chart perspective, upside could reach 7.3p if price remains above that 200 day structure.
- Strategic Minerals: The sell-off from the highs looks over after a bear trap bounce from below the 50 day at 1.1p. Short-term target 1.6p, roughly November resistance.
- ValiRx: In a falling channel since September. A break above the channel top near 0.34p opens a gap fill toward 0.47p and possibly up to the 200 day around 0.53p. Keep the right side of 0.30p as a simple risk control level.
Technical themes and trade plan
Several consistent themes show up across markets:
- Moving averages matter, especially the 50 and 200 day lines. Use them as dynamic support and resistance and as logical places to size into or out of positions.
- RSI readings are providing early clues. Readings above 50 tend to favour continuation, while failures below 50 warn of range extension or deeper pullbacks.
- Trend channels give clear objectives. The indices remain inside rising channels, so tactical buys on dips make sense while those channels hold.
- Small cap momentum often follows clear breakouts above sticky levels. Wait for end of day closes above key lines to confirm moves, and keep simple stop levels beneath recent moving averages.
Bottom line
Markets are biased higher while major indices and selected small caps hold their critical supports. Look for continuation into year end, but respect the 50 and 200 day moving averages and manage risk with clear stop levels. 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.
