Zak Mir takes a charting look at some of the most closely followed small caps on the London Stock Exchange. Today’s charts are the FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, WTI Crude Oil, ASOS, Arc, B Hodl, Critical Minerals, Delta Gold, 80 Mile, Huddled, Kooth, Medpal, Orcadiam, Orosur, Sunda.
The final bank holiday before Christmas brings a broadly constructive charting picture, although several markets are sitting at decision points. The FTSE 100 remains contained within its rising channel, the DAX is roaring ahead, the Dow is waiting on the Federal Reserve, and Bitcoin needs to prove it can clear overhead resistance.
Across individual shares, there are several punchy setups, particularly where prices are consolidating above rising 50-day moving averages. That remains one of the favourite technical configurations: price holds firm while the moving average catches up underneath, potentially setting the stage for the next leg higher.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
FTSE 100: Mid-Range but Still in a Rising Channel
The FTSE 100 has remained within the rising trend channel in place since late March. The channel floor is near 10,750, while the market ended the week just above former support at 10,820.
For now, the index is broadly stuck in a 10,700 to 10,900 range, so there is not a great deal to get excited about until it breaks either boundary. The main risk is a sudden pullback driven by renewed US interest-rate fears.
- Initial support: the 50-day moving average near 10,692.
- Near-term resistance: 10,900.
- Upside target: the channel top around 11,000 by the end of next month.
The RSI has rebounded from the neutral 50 level and continues to respect an extended uptrend line. That supports the positive channel structure, provided the index remains above its 50-day average.
DAX: Still Roaring Ahead
The DAX has been the stronger European market recently. It remains in a rising channel dating back to March and gapped higher on Friday, which is exactly the sort of behaviour that keeps a bullish chart moving in the right direction.
Former July resistance around 25,900 has become support. While that area holds, the immediate target is the top of the channel at 26,800. A sustained break above that could open the way towards the late-January resistance projection around 27,400 by the end of next month.
- Support: 25,900.
- Near-term trend support: around 26,500.
- Channel target: 26,800.
- Higher target: 27,400.
A break below the uptrend line from the middle of last month, near 26,500, would provide the first proper warning that the momentum is fading. Until then, the DAX chart looks very strong.
Dow Jones: Fed Comments Could Set the Next Direction
The Dow has produced slightly odd price action in recent sessions, with red candles appearing despite broadly sideways movement. Markets are clearly waiting for the Federal Reserve chairman’s comments and the interpretation of the interest-rate outlook.
The index has broken above resistance from the beginning of the month near 53,400. Above that level, the top of the rising channel points towards 55,500 by the end of next month.
- Breakout level: 53,400.
- 50-day moving average support: 52,800.
- Upside channel target: 55,500.
Dips towards the 50-day line, or even the lower edge of the channel from April just below it, would be regarded as buying opportunities. The RSI near 55 is in a healthy position for further gains rather than looking stretched.
Bitcoin: Consolidation Needs a Proper Breakout
Bitcoin made progress during the week but lost some of its shine after failing above 80,000. The steepest rising trend line has been broken, although the broader picture can still be treated as a mid-move consolidation rather than a full breakdown.
Recent support lies around 76,000, while the market reached approximately 81,300 before struggling. The key hurdle is the May resistance near 83,000. Until that is cleared, the chart remains stuck beneath an important ceiling.
- Support: 76,000.
- Near-term resistance: 81,300.
- Major resistance: 83,000.
- Lower fallback support: 72,400, at the top of the prior gap.
A pullback to 72,400 may be what Bitcoin needs before it can reset and make a more convincing upside move. For more background on how relative strength is used in charting, see Investopedia’s guide to the Relative Strength Index.
Ethereum: Golden Cross Potential Supports the Bull Case
Ethereum remains in a mid-move consolidation, but the technical backdrop is encouraging. The 50-day and 200-day moving averages are approaching a golden cross, a development often associated with the stronger phase of a bullish cycle.
Recent support is around 2,360. While that level holds, the top of the rising channel suggests a move towards 2,900 by the end of next month.
- Support: 2,360.
- Worst-case technical pullback zone: 2,300.
- Channel target: 2,900.
The 2,300 area was initial resistance when Ethereum broke through the 200-day average earlier in the month. It should now provide a sensible area of support if the current consolidation extends.
Gold: A Sharp Setback Tests Bullish Resolve
Gold was the standout market on Friday, but not for the reason bulls would have wanted. A test of the 200-day moving average near 4,526 was always possible. A sharp move straight through it was not.
Price has found support around 4,450, which had been an earlier support area on the way up. A close below that level would imply a more serious retracement towards 4,320, the support level seen before the earlier-month rally.
- Initial support: 4,450.
- Lower support: 4,320.
- Longer-term channel objective: 5,000.
Despite the ugly short-term action, gold remains inside the rising trend channel that began in June. The RSI is still above neutral at just under 55, leaving something for bulls to work with, provided the 4,320 area holds.
WTI Crude Oil: A Holding Pattern in the Middle of the Range
WTI crude is sending a mixed message. Price is sitting in the middle of the recent range, roughly from just below 80 to 87, and the RSI near 51 is not offering much of a directional clue.
The market needs either a break above falling-channel resistance around 86 or a retreat towards the 200-day moving average at 78.29 before the chart becomes more interesting.
- Range support: just below 80.
- 200-day average: 78.29.
- Falling-channel resistance: around 86.
- Range ceiling: 87.
For now, the technical bias is marginally towards the upside, but it is very much a waiting game.
SpaceX: A Potential Recovery Above the 50-Day Average
SpaceX has now spent two days above its 50-day moving average, which is an encouraging start. More importantly, price is holding above a falling 50-day line near 137.56 and is pressing against the top of its falling trend channel around 138.
A clean move through 138 would improve the recovery case and put the 200-day moving average near 156 in play by the end of next month.
- Breakout level: 138.
- 50-day support: 137.56.
- Deeper support: 130.
- 200-day target: 156.
Failure at 138 would leave the stock vulnerable to a retreat, particularly given the prior resistance in the 142 to 143 area.
UK Small-Cap Share Charts
- ASOS: An Unlikely Winner With Room Towards £4.50: ASOS has been an unlikely winner, but the technical picture has improved dramatically. The shares broke above resistance around 314p, then cleared July resistance. Above that, there is relatively little chart resistance before £4.50. The chart is not perfect, but the ingredients are all there: price is supported by rising 50-day and 200-day moving averages, and the RSI has respected an uptrend line that has been in place since the end of March. Given the current pace, that target could arrive earlier. The immediate priority is simply for the shares to remain on the right side of £4.
- Arc Minerals: A Long-Awaited Upside Setup: Arc Minerals has promised a great deal without delivering enough, but the chart is beginning to look overdue for an upside move. The shares are trading from the base of a rising channel dating back to October. While price holds above the rising 50-day average at 0.62p, the target is the channel top at 0.91p. Both the 50-day and 200-day moving averages are rising and heading towards a potential golden cross, while the RSI has bounced and held comfortably above 50. Best-case target: 1.1p, filling the gap.
- B Hoddle: A Broadening Triangle Breakout in Progress: B Hoddle has benefited from recent buying activity and has now broken above its 200-day moving average. The original attraction was the sideways shuffle above a rising 50-day line, supported by a succession of bright, clear candles above the 200-day average at 7.23p. That setup points towards the top of the broadening triangle near 10p by the end of next month, potentially sooner if the momentum continues.
- Critical Minerals: A Punchy Broadening Triangle: Critical Minerals has not been on the radar for a while, but the chart is worth a fresh look. It has formed a broadening triangle base, with the top of the pattern sitting around 3p. Support is coming from a rising 50-day moving average. Above 2p, the chart points towards 3p by the end of next month. It is a punchy call, but it is also a punchy chart.
- Delta Gold: A Sideways Shuffle With Big-Move Potential: Every day Delta Gold stays above 100p is a win against the bears. The company has attracted an extraordinary amount of negativity, but the chart continues to point to a brighter outlook. The key pattern is a sideways consolidation above a rising 50-day moving average. This is one of the strongest bullish setups because it shows price absorbing supply without losing the underlying trend. A weekly close above 141p would strengthen the case for a significant move towards the top of the range 190p by the end of next month. The rising 50-day average beneath the consolidation is the key technical attraction.
- 80 Mile: Recovering From the Earlier Rug Pull: 80 Mile has also been proving the bears wrong after the earlier sell-off linked to Jamieson drilling news on 12 August. The shares have recovered, and the technical picture is improving. Above the top of the falling trend channel at 0.67p, the first target is recent resistance at 0.83p. The best-case outcome is a move towards 1p by the end of next month. More end-of-day closes above the 50-day average at 0.72p, alongside a more clearly rising 50-day line, would make the recovery story more convincing.
- Huddled: Inverted Head and Shoulders Points Higher: Huddled may have a silly name, but the chart is taking itself seriously. Friday’s session was notably strong, with the shares opening at the low and closing at the high. Above the 50-day moving average at 0.42p, the gap-fill target sits around 0.70p by the end of next month. The chart has the look of an inverted head and shoulders pattern, supported by an extended RSI recovery above 50.
- Kooth: Target Hit, With £2.45 Now in View: Kooth has reached the £2 target at the top of its rising trend channel, hitting the level precisely during Friday’s session. The next question is whether it can close above £2 on an end-of-day basis. If it can, the January resistance projection points towards £2.45 by the end of next month. Ideally, the shares now remain above recently broken resistance around £1.90. Both the 50-day and 200-day moving averages are rising, which keeps the chart in a very good position.
- MedPal: GLP-1 Demand Meets a Long-Awaited 200-Day Break: MedPal has broken convincingly above its 200-day moving average at 4.25p for the first time in a long while. The shares have not traded above that level since December, so this is a meaningful technical improvement. With a rising trend channel in place, the main target is 5.75p by the end of next month. Optimists may even look towards 6p, especially if the shares remain above the rising 50-day average at 3.75p. The rally began with an RSI rebound from the 50 level, giving the move decent technical foundations. A stronger rise in the 50-day moving average would add further support.
- Ocado: Rising Moving Averages and a Potential Golden Cross: Ocado is beginning to look more constructive. Both the 50-day and 200-day moving averages are rising, and the chart is moving towards a potential golden cross early next month. As long as the shares remain above the 200-day average at 15p, the top of the channel near 25p is the target by the end of next month.
- Orosur: Needs a Break Above the Falling Channel: Orosur has been a share-price disappointment despite strong fundamentals. Technically, the shares remain trapped inside a falling trend channel, so the key requirement is obvious: break the top of that channel at 16.75p. A successful breakout would indicate a move towards 21.25p by the end of next month. At present, the RSI is just below neutral 50, reinforcing the need for a proper technical break. The 15p support line needs to hold. A break below it would suggest that the decline has further to run.
- Sunda: New Zealand News Has Rehabilitated the Chart: Sunda has rehabilitated itself on the back of its New Zealand news, although the recent strength may still have room to run. Initial resistance is around 2.9p, and the more important level is the top of the falling trend channel at 3.3p. If the shares can push through 3.3p over the next few sessions, the technical target is 4.65p by the end of next month. The shares have already performed well, but the chart suggests that a more substantial recovery could still be available if the falling-channel resistance gives way.
What Matters Most in the Coming Weeks
The main market theme is straightforward. Several indices remain bullish but are approaching important resistance, while Bitcoin and gold are testing whether their current consolidations can hold together.
For individual shares, the focus remains on clear chart confirmation: end-of-day closes above resistance, prices holding above rising 50-day averages, and RSI readings sustaining above 50. A golden cross can provide further confirmation when the 50-day moving average rises through the 200-day average, but price action around support and resistance remains the first thing to watch.
As ever, targets are conditional on key support holding. When a chart is in a rising channel and consolidating above a rising moving average, it deserves respect. When support breaks, it is time to reassess rather than hope.
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 to 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.
