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, Active Energy, Aura, Celsius, 80 Mile, ECR, eEnergy, Ferrexpo, Iomart, Landore, Mycelx, Neo Energy, Pebble, Strategic Minerals, Tungsten West.
Here is a chart-first read across major indices, crypto, gold and a selection of small caps. The emphasis is on trend channels, moving averages, RSI behaviour and the practical support and resistance levels to watch over the coming weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The FTSE has been in a rising trend channel since October and recently respected the psychological 10,000 level as support. A breakout above the February channel top around 10,220 closed the week on a constructive note.
Near-term target while the market stays above 10,000 is roughly 10,500–10,600 by the end of next month. Use closes back below the channel floor for caution and reassessment.
DAX
After a bear-trap style reversal and a couple of gap moves, the DAX found support around yesterday’s lows near 24,700, which was former October resistance. The key guardrail to avoid a deeper pullback is the 50-day line near 24,200.
As long as price holds above the recent low, a reasonable upside target by the end of next month is around 25,700. A drop and close below the 50-day line is the zone to consider limit orders for a long re-entry.
Dow Jones
The Dow is sitting in a steeper, more tentative rising channel and is testing the February resistance area at 50,000. A firm close above that would leave the market looking toward the channel top near 52,000.
Conversely, a break below the 50-day line at about 48,000 would be the primary downside risk zone and a place to consider protective limit orders.
Crypto
Bitcoin
Bitcoin is struggling to clear the falling 50-day moving average and the RSI has slipped below neutral 50. Several failed attempts to reclaim the 50-day line raise the probability of a test of the rising channel floor near 86,000.
If that support fails, the next material level is November support just above 80,000. Keep the 50-day line and RSI 50 zone as the health checks for bulls.
Ethereum
Ethereum has also closed back below the 50-day line and under the April uptrend line at around 2,980. Unless there is an end of day close back above that region, a run toward November support near 2,622 is plausible by the end of next month.
Only a decisive reclaim of the 50-day line, near 3,077, would open the path back to around 3,300.
Gold
Gold put in a powerful upside move, briefly clearing the top of the old November channel at about 4,860. A best-case scenario target sits near the July resistance line at 5,370.
Key support to hold is the mid-January breakout area around 4,670. That spike extended price, so there is some rugpull risk; staying above the old resistance turned support keeps the bullish case intact.
Small – Caps
Small caps are where the action and idiosyncratic moves live. Below are chart highlights and practical levels for a number of names showing momentum, breakouts or useful risk points.
Active Energy: Positive RSI behaviour with a 50-zone rebound and a rising 50-day, top of the triangle at 0.115p. Watch for a triangle breakout near the short-term resistance area. Maintain the 50-day as your near-term stop level.
Aura Energy: Gapped higher into a rising trend channel. The top of the channel around 15p is the near-term upside objective while the market holds above roughly 10p.
Celsius Resources: Strong start to the year with initial targets reached. The next meaningful upside is the old spring 2023 peak near 1.4p. Holding above the recent gap and broken resistance zone near 0.9p is important.
80 Mile: Shares have pushed past earlier channel targets and exceeded an upper parallel. The next objective is around 1.5p, provided the stock remains above recent broken resistance near 0.7p.
ECR Minerals: Already ran through a first target and is targeting additional resistance near 0.46p, which aligns with late 2024 highs. The chart carries multiple bullish signals, including a rising RSI and moving average crossovers. We hait our first target of 0.32p, next target 0.46p.
eEnergy Group: In a run up to a potential golden cross between the 50 and 200-day lines. Breaking and holding above recent resistance near 5p opens a retest of May resistance around 6.5–7p.
Ferrexpo: A tidy breakout above initial January resistance near 79p. An end of day close above the recent channel top would project further upside toward around 110p by the end of next month, assuming positive fundamentals persist.
Iomart Group: Consolidated at the 50-day moving average and has lifted above it. The falling trend channel top from last autumn sits near 26p and is a reasonable target for the near term.
Landore Resources: Recovered from an oversold dive and executed a clean bear-trap move. Staying above the key support near 2.33p opens a path to fill the recent gap toward roughly 3.66p.
Mycelx Di: Has blasted through the top of its rising channel and looks technically strong. Near-term aim is around 50p, which also corresponds to a gap-fill target.
Neo Energy: Has met expectations and moved back above critical short-term levels. An end of day close above 1.05p would see a clear path to about 1.37p, with 0.9p as the key short-term support to preserve the bullish case.
Pebble Group: Looking toward a golden cross over the next week after breaking resistance at 48p. A logical next target is around 67p.
Strategic Minerals: Post-placing reaction has been resilient, with a rising trend channel in place. Above recent resistance near 1.2p, the chart projects toward approximately 2.5p over the next month.
Tungsten West: Enjoying a neat rising trend. While above the short-term support near 15p, a move toward 20p looks achievable, perhaps sooner than originally expected.
Practical checklist for traders
- Use the 50-day moving average and the RSI 50 level as primary health checks for the major indices and crypto.
- Respect key support areas (FTSE 10,000, DAX 24,200–24,700, Dow 48,000) as limit order zones for potential long entries.
- For small caps, keep position sizing sensible and place stop levels under the nearest structural support or recent gap low.
- Watch for moving average crossovers and filled gaps as confirmation for stronger trend continuation.
Charts continue to tell the story. Trends remain the easiest path to trade, but momentum shifts happen quickly, so keep stops and plan entries around the levels above. More updates over the weekend.
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.
