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, Ascent Resources, Bradda, Chesterfield, Contango, Eurasia, Eco Buildings, Hama, Immupharma, ICFG, Red Rock, Zenith.
In this update, I walk through the charts and setups I’m watching across major indices, cryptocurrencies, gold and a selection of small-cap stocks. Below, I’ll summarise the key levels, what I’d like to see next, and the realistic downside risks to be mindful of.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Quick market pulse
FTSE 100
The FTSE remains inside the rising trend channel that’s been in place since June. We’d hoped for a fresh leg higher earlier in the month, but instead the index came down to test the lower floor of that channel—around 9,275—and the 50‑day line (9,282).
What I want to see next is a quick move back above the recent broken support zone (around 9,390 on an end‑of‑day close). If that happens early next week then a run toward an end‑of‑November target as high as 9,670 is entirely feasible. If we fail to reclaim that 9,390 area, the more complicated path opens up with a risk of testing mid‑September support near 9,200. At this stage I’m not expecting anything worse than that; ideally the channel floor holds.
DAX
The DAX bounced off a long‑term April support line and is actually sitting a touch above it. The concern is the 50‑day moving average is falling and the RSI has dipped below neutral (43), which points to the possibility of a deeper test.
We may need to see a re‑test of August/September support near the 23,200 area and possibly the 200‑day line just under that (≈23,100) before a proper recovery. The fact the DAX topped out close to record highs (24,600) makes this a delicate spot — an end‑of‑day close back above 24,000 and a snap‑back through the 50‑day would alleviate the negative picture.
Dow Jones
The Dow has held up reasonably well, wrestling with its 50‑day moving average (around 45,725). There’s a band of resistance from the start of October near 46,200 that needs to be cleared to set up a move toward the top of the broader rising channel that’s been guiding the market since May last year.
Encouragingly we’ve seen an RSI rebound around 50 and a bounce above the rising 50‑day line since Wednesday, which is a constructive look for a potential recovery.
Bitcoin and Cryptocurrencies
Bitcoin has been through a rough patch — we’ve broken the floor of the rising channel and lost the 200‑day moving average (the 200‑day was just above current levels, roughly 107,300 in my notes). Below that there’s a real risk of a move down to the ~98,000 area, which would be an unpleasant development for the crypto complex.
Best case now is a return above the 200‑day moving average; the key downside level to avoid is 98,000. There’s a possibility the market is trading in a wider sideways channel, but anything beneath that would be a problem given the 50‑day is beginning to tilt lower and the RSI weakness.
Ethereum
Ethereum has had more hopes attached to it and remains above its 200‑day moving average (3,177), which is a positive. There’s an uptrend line from April that roughly coincides with Thursday’s support (around 3,680). If it holds above that uptrend, a recovery back toward the 4,500+ area by month‑end is still possible, though the RSI’s dip below 50 is a cautionary note.
Gold
Gold had an impressive run and hit my 4,200 target; there was an even better case target at 4,500 that may have to wait. For now I’d like to see the market stay above the 4,070 area — that initial October resistance — otherwise the momentum looks a little tired after such a strong move.
Small‑cap stocks
Below are the names I’m watching closely, why they matter and the targets/levels I’m tracking. These are chart‑based observations — keep position sizing and risk management front of mind.
Key themes and risk management
There are a few recurring themes in the charts this weekend:
Many indices and small caps are testing moving averages (50‑day and 200‑day). Holds and reclaims of those lines would be constructive; failures increase the risk of deeper retracement.
RSI behaviour around the 50 level is proving informative — rebounds through 50 tend to confirm momentum shifts; slips below 50 warn of further testing lower.
Gap reversals, bear‑trap setups and sideways shuffles above rising 50‑day lines are the patterns that have delivered some of the best follow‑through moves in these small caps.
Conclusion
We’re at a make‑or‑break stage in a number of markets. FTSE and DAX need to reclaim key levels to keep the higher‑timeframe uptrends intact. Bitcoin’s ability to get back above the 200‑day is crucial to avoid deeper downside. On the small‑cap front there are several names showing constructive footprints — Ascent, Bradda, Chesterfield, Eco Buildings and a few others — but these setups require discipline and clear end‑of‑day confirmations.
“”Ideally we get back above recent broken support quickly — otherwise the path becomes more complicated.””
That’s it for today — I’ll post more updates tomorrow as the charts evolve. Trade carefully and keep risk management front and centre.
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.
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