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, Pound / Dollar being ridiculously overvalued, Arc Minerals, Cropper, Cora, Ecora, Empire Metals, Galileo, ImmuPharma, Jangada, MedPal, Metir, Pensana, Strategic Minerals, ValiRx.
Below, I walk through the key indices, crypto, gold, pound/dollar and a selection of small caps I’m watching — the support and resistance levels, RSI and moving-average context, and my near-term targets.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Quick note on indicators I use
I regularly reference the 50-day and 200-day moving averages and the RSI. In short:
- 50-day / 200-day moving averages act as dynamic support and resistance; rising lines are constructive.
- RSI around 50 is neutral; above 50 implies bullish momentum, below 50 bearish. Rebounds above 50 are useful leading signals.
Indices
FTSE 100
We had a mini rug-pull below 9,180 — the kind of move everyone feared — but the index bounced back above the 50‑day (around 9,049) and the August support level. The RSI dipped below 50 but we saw the same in June before new highs, so this could be another shallow correction inside a rising channel since June.
Key levels & targets:
- Short-term pivot: 9,200 — an end‑of‑day close above here would be a trigger.
- Momentum confirmation: RSI back above 50 .
- Near-term upside: aiming for 9,400+ (ideally by the end of this month; next month at latest).
DAX
Similar story — a modest pullback but holding above the August support at 23,400 . RSI slipped under 50 but hasn’t accelerated lower, which again reads like a rug-pull inside a bull run rather than a major top.
Key levels & targets:
- 200‑day remains well below at c. 22,400 (long-term support).
- Initial upside target: 24,800 (and the 50‑day line as resistance).
Dow
After the U.S. holiday the Dow found and tested support around 45,000 and bounced. RSI remains constructive at 57 , which supports further gains.
- Near-term upside target: 47,500 (ideally by end of next month; I’d love to see it by month-end).
- Downside cushion: the 50‑day line around 44,400 .
Crypto
Bitcoin
Bitcoin found support near the floor of its rising channel (around the low-100s in the charting scale I’m watching), and has broken last month’s resistance through the c.110 area. We’re trading above that resistance and are eyeing the 50‑day moving average.
- Near-term resistance / target: 50‑day at c. 115 , then the top of the rising channel near 130 (by the end of next month if momentum holds).
- Downside buffer: July support around 105 is the limit I’d want to see violated before getting more cautious.
- RSI: odd behaviour — bouncing in the upper 30s — but still workable if price holds the channel floor.
Ethereum
Quieter day for Ethereum. It’s sitting on the floor of its rising channel (roughly the equivalent floor to Bitcoin’s), around 4,300 .
- Constructive case: stay above 4,300 and there’s a shot at 5,500 by the end of next month.
- Risk case: test of the 50‑day (4,074) or old resistance around 4,000 (levels from July/December).
Commodities & FX
Gold
Good momentum here — gold has broken out of a five‑month consolidation. The break above c. 3,410 is meaningful.
- Near-term target: 3,800 (end of next month; possibly sooner).
- Downside floor: the channel floor near 3,350 , with the important psychological level at 3,500 to stay above.
Pound / Dollar (GBP/USD)
The pound/dollar chart remains interesting — my back-of-envelope said it could be closer to ~1.10 under a different political regime, yet it sits nearer the top of its long-term range (around 1.36) and could push toward 1.40 .
- Momentum indicator: RSI is under a resistance line near 60 and the RSI itself is below neutral 50 — so a breakdown is possible.
- Support: the 200‑day moving average around3050 .
Small caps and selected stocks
Here’s a run-through of the smaller names I’m watching on the bulletin board — levels, triggers and short-term targets.
Arc Minerals
- Trading either side of the November floor (1p).
- If it can hold >1p and keep the RSI uptrend intact, there’s a chance of a sustained move to 1.25p .
- Has been a problem child — many false dawns — so patience required.
James Cropper
- We’ve broken the falling trend channel (around 280p on my charting grid).
- On an end‑of‑day close above this structure, I’m looking to £4.00 (ambitious by month‑end but plausible given today’s gap up).
- Positive: both 50 and 200‑day MAs are rising in parallel (a bullish sign).
Cora
- Decent update and breakout pattern — a bull-flag / consolidation breakout above the May peak (9p).
- Target: 12.75p by the end of this month.
Ecora
- Two RNS days in a row and a gap higher — we held the gap and remain above 77p .
- Target: 90p by month‑end. RSI rebounds above 50 and rising 50/200‑day lines are constructive.
Empire Metals
- Stunning rally — shares are above 60p .
- Short-term target: 75p (could happen quickly, even within the week).
Galileo
- Looking to break the top of a falling trend channel near 1.10p .
- Target: 1.5p by the end of next month — top of the broadening triangle from autumn 2023.
- Positive signs: unfilled upside gap (a bear-trap gap reversal) and the 50/200 moving averages are converging toward a golden cross.
ImmuPharma
- Trading around previous 4.6p target area; 50 and 200‑day lines are rising.
- We’ve held the gap higher from earlier this week; an end‑of‑day close above 4.75p would open a move toward 8p (target as soon as month‑end or low for next month).
Jangada
- Optimistic RNS on drilling for gold; shares pushed through recent resistance at 0.70p .
- Target on an end‑of‑day close above resistance: 1.25p by month‑end.
MedPal
- Fresh name with interesting momentum and RNS-driven activity.
- Rising trend channel floor 8.75p , wanting to stay above the 50/200 area at 6.5p .
- Near-term target: 16p by the end of next month; market cap already around £38m so watch liquidity and news flow.
Met
- Nice steady progress — inching toward the target I set (1.2p initial).
- If momentum continues, the upper parallel of the rising channel could carry shares toward 2.50p by the end of next month.
- Support: keep above recent broken resistance 1.10p . Multiple RSI rebounds (six or seven) are acting as a leading indicator.
Pensana
- Transformed over recent months — looks like a bull-flag breakout.
- Previous target 110p ; above that I’m looking to 160p by the end of next month.
Strategic Minerals
- Strong, steady set-up inside a rising trend channel that’s been in place for close to two years.
- Support: rising 50 and 200 lines near the 0.30p area. Top of channel target near 0.5p by the end of next month if the trend holds.
ValiRx
- Encouraging RNS earlier in the week and a nice find of support above the 200‑day line (around 0.68p ).
- Target: 1p by the end of next month, news permitting.
Bottom line
Overall, many markets look like they’re simply digesting recent gains rather than rolling over into big declines. Key themes to watch are whether the 50‑day lines hold across indices and whether RSI readings climb back above neutral 50 — both would be constructive signals.
I’ll be watching the trigger levels and end‑of‑day closes I’ve outlined above. Good news, or at least constructive technicals, could accelerate several of the small-cap setups I mentioned — but as always, manage risk and watch the 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.
