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, Atlas Metals, Alkemy, Amigo, Directa Plus, DeFi Development, EnergyPathways, Georgina Energy, IMC Exploration, Kendrick, Landore, Physiomics, Warpaint.
A late tumble on Wall Street cast a shadow, yet a number of indices remain inside recent ranges. Cryptocurrencies took the brunt of the selling, while gold exploded into volatility and a clutch of smaller stocks are forming some very tradable patterns.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below is a practical, level-based run through what to watch this week—targets, risks and the technical cues that matter.
Major indices: FTSE 100, DAX, Dow
FTSE 100
The instrument on IG is around 10,180, still within the recent channel. The immediate floor sits near 10,140 and the nearer-term top around 10,240. Best-case scenario remains a push toward 10,500 by late February / early March if the market holds above the channel floor.
RSI action has been notable—bounces have come from the 60+ area rather than the usual 50. That stubborn strength suggests underlying resilience despite US weakness.
DAX
Focus is the 50-day moving average at roughly 24,300. As long as the DAX closes above that on a daily basis, the path of least resistance is up toward the recent resistance at 25,000. If that 50-day fails, downside risk targets the rising channel floor from April near 23,700.
Dow
The Dow has bounced back inside a rising channel formed since late November and is holding above the 50-day line near 48,300. The obvious upside objective is the channel top and the psychological 50,000 mark—possible later in the month if momentum persists. The lilac acceleration line suggests a faster upside, though that may be optimistic if macro headlines remain negative.
Cryptocurrencies: Bitcoin and Ethereum
Bitcoin
Bitcoin has suffered a sharp breakdown. It slid through the rising trend channel that had been intact since October and fell below the November floor around 80,591. The next meaningful support is the April low just under 75,000. The market already probed that zone—low prints near 76,000—but further probes toward the mid 70s would not be surprising.
RSI is deeply oversold at about 24, similar to other oversold episodes last year. That implies a bounce is plausible, but there could be another day or two of downside before the relief rally.
Clear buy signal: an end-of-day close back above 80,500 (the prior November floor). Until then, caution is warranted.
Ethereum
Ethereum also broke the November floor at 2,622 and is targeting the June support zone near 2,100. The immediate technical target is around 2,128 while the 200-day moving average is sloping lower, which adds downward pressure in the near term.
RSI sits around 25, so oversold conditions are present here too. Historically, similar lows have produced decent bounces, but the falling 200-day line suggests caution until momentum confirms a reversal.
Gold
Gold saw a volatility spike at week end. The price slightly exceeded the lilac projection line (near 55.95 in the speaker’s scale) and then bounced off the old target around 51.60. As long as the market holds above 51.60, the best-case projection is a move up toward the lilac line projection near 56.80.
Watch for whether this proves to be a genuine breakout or simply a high-volatility wobble around the projection lines.
Stocks to watch: short technical briefs and targets
Below are concise setups, the levels to watch and near-term targets based on current chart structure.
- Atlas Metals — Saucer or U-shaped recovery since December. An end-of-day close above the 50-day line around 16p would open a run toward 25p by month-end. Keep recent neckline near 12p as support.
- Alkemy Capital — Strong rebound from around 390. Good fundamentals and a rising RSI above 50. Target £5 by month-end if momentum holds.
- Atlantic Lithium — Staying with the lithium theme. A daily close above the top of the triangular channel near 13p targets 17p. Recent broken resistance near 12p should act as support.
- Amigo — January performance has turned trepidation into excitement. While above broken resistance near 2.1p, a move to 3p (or more) during February is feasible.
- Directa Plus — Showing a bullish mid-move consolidation and rising 50- and 200-day lines. Initial objective around 14.75p, with upside to 20p possible by month-end if the channel floor near 12p holds.
- DeFi Development — Sideways shuffle with a rising 50-day average. Minimum target of 128p by the end of next month while staying above recent support near 76p.
- EnergyPathways — Broke October resistance around 5.2p. The obvious target is the top of the range near 10p, though that will need fundamental push to match the technical breakout.
- Georgina Energy (bear-beaten recovery) — Managed to resist the sell-off. A break through the 200-day line and the June resistance area near 5.8p gives a path to 10p and potentially higher toward prior spring resistance around 11–12p.
- IMC Exploration — License extension news helped the shares hit the first target at 1.07p. An end-of-day close through 1.10p would point toward 1.6p next month. Both 50 and 200 day moving averages are rising.
- Kendrick — Doing well, momentum holding. Second target hit at 0.67p; next area to watch is about 0.96p by month-end.
- Landore — U-shaped formation. A close through 2.9p could fill the gap up to 3.5–3.6p. A punchy setup supported by a lively interview backdrop.
- Physiomics — Contract-driven strength has taken the shares to the first target at 0.46p. Second target around 0.58p while staying above the 200-day line near 0.41p.
- Warpaint — Broke through the 50-day moving average with a rising gap and cleared old resistance near 2.12p. The minimum target is the 200-day line and the top of the trend channel near 3.02p by the end of next month.
Practical takeaways and levels to watch this week
- Indices: FTSE holding above 10,140 preserves the channel; DAX must stay above 24,300 to avoid a slip toward 23,700; Dow needs to keep >48,300 to aim for 50,000.
- Bitcoin: Watch for an end-of-day close back above 80,500 for a buy signal; otherwise expect further tests toward the mid 70s.
- Ethereum: Below 2,622, downside toward ~2,100–2,128 remains the path until momentum improves.
- Gold: Holding above 51.60 keeps the bull case alive toward ~56.80; failure below that would open a different script.
- Small caps: Keep an eye on the 50- and 200-day moving averages and established support levels quoted above. Several stocks have clear, tradeable targets if their breakout levels hold.
Markets rarely move in straight lines. Use the levels above to frame risk, watch RSI and moving-average behaviour, and let confirmed closes guide entries rather than intraday noise. More updates will land during the week as price action unfolds.
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.
