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, Alba, Amaroq, Critical Metals, Eden, Golden Rock, GreenRoc, GSTechnologies, Hydrogen Utopia, IQE, Reabold, Rainbow Rare Earths, Scancell, Zenith.
Technical tone remains cautiously constructive across a mix of indices, cryptos and selected small caps. Momentum indicators and moving averages are the primary tools in play: staying above rising 50‑day or 200‑day moving averages and RSI holding above neutral 50 are the signals to remain bullish. When those levels fail, the charts point to well‑defined support lines that would be logical next stops.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Quick refresher on the signals mentioned
- 50‑day moving average — short to medium trend. Holding above this suggests upward momentum.
- 200‑day moving average — longer term trend. Approaching or testing this line is significant for trend confirmation.
- RSI above 50 — momentum is biased to the upside; under 50 suggests loss of upside control.
Indices and volatility
FTSE 100
The FTSE 100 pulled back from the top of its channel and found support just under 100. As long as it stays above the key near support at 9,970, expect a move toward 10,180 in the coming days and potentially up to 10,500 by the end of next month.
DAX
Slow, steady breakout behaviour. Key levels to monitor: staying above 25,000 keeps the path open to the channel top near 25,800, which could be reachable as soon as the end of this month. The old resistance around 24,700 has flipped to support.
Dow
The Dow has tested the top of a rising channel from late February, near 49,700. An end‑of‑day close above that opens a direct trajectory toward 50,000 and possibly higher, provided the index remains above recently broken resistance near 48,800. RSI sitting comfortably above 50 (base near 60) supports the bullish case.
Cryptocurrencies and gold
Bitcoin
Not a catastrophic pullback — price is still above the 50‑day moving average at about £89,200 (rising). A bounce off that line keeps the short‑term target at recent resistance around £94,600. Best case scenario sees a run toward the 200‑day moving average near £106,000 by the end of next month. If Bitcoin drops back under the 50‑day, the October uptrend line close to £85,600 is the next plausible support.
Ethereum
Similar dynamics to Bitcoin but a touch stronger. Ethereum has bounced above its 50‑day (around £3,022) and the 200‑day target sits near £3,617–3,622 by the end of next month. Worst case would be a deeper test of the April uptrend line near £2,880, which has held repeatedly in recent weeks.
Gold
Gold remains in a clear rising channel dating back to October. With the market above £4,330, expect a push toward £4,800 by the end of next month if the channel holds intact. The broader pattern looks constructive despite the brief wobble at the turn of the month.
Selected small caps: technicals and targets
Below are short technical notes and near‑term targets for a group of smaller UK‑listed names showing chart interest. These are price‑action driven observations; watch the highlighted moving averages and recent support/resistance levels.
Alba
- Bouncing at or just below the rising 200‑day line (around 0.19p).
- Initial target: 0.26p; higher target by month end: 0.35p.
Amaroq
- Recovered aggressively after a summer wobble.
- Initial target around 110p, with upside to 150p by the end of next month.
Critical Metals
- In a rising trend channel since July. Top of channel near 17p.
- Longer stretch could aim toward the upper parallel near 25p, but first objective is 17–18p by month end. Key support: recent broken resistance at 11p.
Eden
- Positive RNS and a gap‑up. 50‑day above 200‑day — bullish set‑up.
- Current base: 3p. Near target: 4½p, with potential to go higher sooner given momentum.
Golden Rock
- 50 and 200‑day lines both rising. RSI rebound from neutral supports a bullish view.
- Break of 3.5p could open moves toward 5.25p by the end of the month.
GreenRoc
- 50 and 200‑day lines rising; the share price has been sitting around RSI 50.
- Target: top of the range near 4.5p by the end of next month while it stays above the 50‑day (2.67p).
GS Technologies
- Periodically bursts to life — currently a gap close buy signal and a possible bear‑trap rebound.
- Minimum objective: 0.75p (old November resistance). If weekly closes above recent broker resistance (0.57p), upside to the 200‑day near 0.95p becomes plausible.
Hydrogen Utopia (HUI)
- New subsidiary in KSA prompted a strong move. Consistent RSI 50 rebounds since October.
- Initial target: 4.1p. Bigger channel upside toward 8–9p if the trend persists. Avoid a break below the 50‑day (2.78p).
IQE
- Breaking back up after a long decline since February; recent resistance cleared at 6.2p.
- Target: top of the long‑term trend channel near 11.50p by the end of next month.
Reabold
- Seen a rising base and a sustained move above old broken resistance around 0.62p.
- Looking to the triangle top near 0.90p by month end.
Rainbow Rare Earths
- Rising channel in place since June. Top of the channel and range around 27p.
- Watch for decent end‑of‑day closes above the 50‑day line (18–12p) to fuel the move.
Scancell
- Volatile name but recently broke resistance around 10–12p.
- Target: top of the March channel near 13.5p by the end of next month.
Zenith
- Bounced off the floor of a rising trend channel. 50‑day is rising and RSI has pushed through neutral 50.
- Expect a run toward 5p by the end of next month while it remains above the 50‑day (3.3p).
Concluding notes
Technical setups across indices and a selection of small caps point to a constructive near‑term environment, provided key moving averages and support levels hold. Watch the 50‑day and 200‑day moving averages and keep an eye on RSI as a momentum filter. For the smaller names, tight risk management around the cited support levels makes practical sense—the charts offer clear stop and target levels to work with.
More updates will follow as price action unfolds and key levels get tested or taken out.
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.
