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, Silver, Audioboom, Ajax, Bezant, Goldstone, Mobile Streams, Oriole, Orosur, Phoenix Copper, Solvonis, Sulnox.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Quick overview
The market has finished the year on a broadly constructive note. Major indices are testing upper channel ranges, the 50‑day moving average is starting to act as support in a number of cases, and several small‑cap names are showing fresh breakouts or interesting setups. Below I walk through the key charts, the technical levels that matter right now, and the short‑term targets to watch into January and February.
Major indices
FTSE 100
The FTSE remains strong, up more than 20% for the year and sitting close to the psychological 10,000 mark. The important near‑term pivot to watch is the broken December resistance around 9,770. As long as we stay above that level (and preferably above 9,800), the bias is higher.
Targets and risk levels:
- Near target: Top of the February channel, 10,150.
- Support to protect: 50‑day moving average near 9,700 if a pullback occurs.
DAX
The DAX is attempting another push higher. A successful break above 24,500 opens the October highs near 24,800, with the channel top potentially reaching 25,600 by the end of February.
Technical context: the 50‑day moving average has started to tilt up and the RSI has rebounded through 50 — both are supportive signs for a renewed leg higher. Short‑term downside to watch is a test of the 50‑day around 24,000.
Dow Jones
The Dow has pulled back from the February channel top and needs to reassert momentum. Initial upside objective sits around 49,100, with a more ambitious target of 50,000 by the end of next month if the uptrend resumes.
On the downside, a deeper pullback should find interest around the 50‑day moving average near 47,476.
Cryptocurrencies
Bitcoin
Bitcoin continues to chop between important moving‑average levels. The 50‑day sits near 90,000, and price has been flirting with that zone without convincingly clearing it. The present range appears to be roughly 85,000–94,000.
Momentum remains a concern: the RSI is below neutral 50 and nearer 45, which keeps the edge to the downside until a clear break above the 50‑day.
Key levels:
- Range support: 85,000.
- Worse case channel floor: just under 82,000.
Ethereum
Ethereum is at a critical juncture. The 50‑day moving average sits near 3,026 and the uptrend line from April is around 2,870. An end‑of‑day close above the 50‑day would open a re‑test of December resistance near 3,400.
Risk: while below the 50‑day and with the RSI under 50, the safer assumption is that downside remains possible. Important support is November’s zone at roughly 2,622.
Precious metals
Gold
The recent pullback in gold looked unsettling to some, but it is still inside the rising trend channel that began in October. Price briefly dipped back to earlier support rather than breaking the structure.
Important levels:
- Current defending zone: ~4,270.
- 50‑day danger level: ~4,172 — a close below here would be more worrying.
- Upside potential: could reach ~4,700 by the end of February while above the 4,270 area.
Silver
Silver held the top of its gap and remained above the important 70 level. As long as that holds, the bullish case targets near 85.
Selected small‑cap setups (UK AIM / Aquis)
Several small caps are showing neat technical patterns: breakouts, 50‑day support holds and RSI rebounds. These are higher‑volatility plays, so manage position sizing and watch volume and news closely.
AudioBoom
Nice breakout through the sticky resistance around £7. There is a legacy resistance area near 830–840p from 2022 that may still act as a hurdle, but the RSI is supportive. Be mindful that this name has seen profit‑taking on previous rallies.
Ajax
Bounced above a sharply rising 50‑day moving average at about 5.53p with the RSI back above 50. A re‑test of prior highs near 8p+ could come as soon as the end of next month while momentum holds.
Bezant
Cleared the 50‑day and is trading around 0.0808p. Targeting October highs near 0.13p into January, assuming continued strength.
Goldstone
A positive corporate update: a loan extension that removes a near‑term overhang. The initial target remains around 0.74p, with the next resistance up near previous tops around 0.80p+.
Mobile Streams
After a spell out of favour the RSI fell to extremely low levels, signalling oversold conditions. The most sensible near‑term objective, even if the market sells off again later, is the December 22 support around 0.36p. Recovery will depend on whether the broken resistance near 0.25p is reclaimed as support.
Oriole
Several small caps that reported strong RSI rebounds now show 50 and 200‑day moving averages trending up in parallel. One example is bouncing from the 50‑day with a target near 0.5p if the momentum continues.
Orosur
Cleared September resistance and while above the 50‑day (roughly 21.5p) the path toward 40p by the end of February looks plausible.
Phoenix Copper
Director buying has supported the shares. The initial target of 2.9p has been exceeded and a move toward 5p+ could unfold into next month, particularly if funding or further corporate news appears.
Solvonis
Several AIM/Aquis names are trying to push through their 50‑day averages and rising channels. For example, one stock is targeting 46p toward the top of its channel by the end of February while remaining above the 200‑day line near 25p.
SulNOx
On Aquis, Solnox has produced a clean mid‑move consolidation breakout above 90p. The top of its channel sits near 150p by the end of February, with 80p a useful downside guard.
How to use these levels
- Let the 50‑day moving average and RSI guide bias: a rising 50‑day and an RSI above 50 generally favour higher targets; the reverse warns of range risk or pullbacks.
- For indices, treat broken December resistance as support. A close back under those levels is a signal to reassess risk limits.
- For small caps, use clear breakouts and follow‑through on volume as confirmation. Expect volatility and keep position sizes disciplined.
- Keep an eye on corporate headlines for AIM and Aquis names. Funding, director buying, and loan extensions can materially change the risk/reward.
Final thought
Technicals currently favour a continuation higher for many parts of the market, provided key supports hold. Watch the 50‑day moving average and RSI readings for confirmation. In small‑cap land the blend of breakouts and fundamental headlines creates opportunity — but also higher risk. Stay selective, respect stops, and let the charts do the talking.
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.
