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, Avacta, Chesterfield, Cyanconnode, Fulcrum Metals, Genincode, Hardide, IMC, Shearwater, Strategic Minerals, Ovoca Bio/Talisman Metals, and Tungsten West.
Markets are carving out fresh patterns this week. Some major indices are showing bullish conviction, while crypto remains under pressure. This update pulls together the key technical levels, likely scenarios and a watchlist of small-cap opportunities worth tracking.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Macro indices
FTSE 100
The FTSE has finally cleared the top of the long rising trend channel from last February. With a confirmed break above 10,260, the near-term target is eyeing 10,650 by the end of March. A previously forecast target of 10,500 for this month now looks more attainable.
Key levels:
- Confirmed breakout: 10,260
- Near-term target: 10,650
- Rug pull floor if we reverse: 10,150 (floor of the October rising channel)
Technicals supportive: both the 50-day and 200-day moving averages are rising and sitting well below price. Importantly, the RSI has been finding support in the 60 zone rather than around 50 — a bullish signature usually seen in strong uptrends.
DAX
DAX is not quite as strong as the FTSE but still constructive. The market bounced from a rising 50-day moving average and already hit the initial target of 25,000. Next resistances are last month’s highs near 25,600 and the top of the April-origin rising channel.
Best-case path: push through last month’s highs later this month and aim for resistance line projections around 26,500. The conservative downside to watch is the 50-day at roughly 24,384, with RSI back above neutral supporting further gains.
Dow Jones
The Dow has been more complex, partly due to headline sensitivity. Price has bounced after some rejigs of the December rising trend channel and reclaimed the 50-day moving average around 48,350. Immediate support from the December channel now sits near 48,800.
Targets and risk:
- Initial target: 50,000
- Stretch target by month end: 52,000 (channel top)
- Key support if price falls: 48,352 (50-day MA)
RSI has rebounded to around 50 after a downside overshoot, which often precedes renewed upside momentum. Still, any surprising political headlines could trigger a pullback toward the 50-day level.
Cryptocurrencies
Bitcoin
Crypto remains the weak link. Bitcoin has failed to hold the old support around $80,500 and now faces resistance near $79,200. If the market cannot close above that, a retest of April support near $74,000 looks likely, with a possible worst-case band around $72,000–$73,000.
Downside scenario: staying within the falling red channel from August would put pressure toward roughly $62,000. That would be a deep buying test for corporate treasuries and long-term buyers.
Ethereum
Ethereum mirrors Bitcoin’s weakness but remains well above its April low near $1,400. Recent failure below the November support at $2,622 makes $2,470 an immediate resistance area. On a close below that, downside exposure could extend toward the falling channel floor near $1,770.
Gold
Gold’s recent pullback from the lilac line at around 5,550 was expected. The metal has bounced off the end-December spike at about 4,793. So long as end-of-day closes remain above the 4,800 area, a retracement back toward the 5,100–5,200 band (projected resistance around 5,170) is plausible.
Encouragingly, the RSI remains above neutral near 56, suggesting the worst of the pullback may be over for now.
Small-cap watchlist:
Below are highlighted small-cap setups showing clear levels, breakouts and potential targets. These are technical ideas — consider position sizing and stop placement before trading.
Avacta Group: Shares are trying to regroup after a heavy December drop. There are signs of a bear-trap rebound from just below the rising 200-day line near 52p and support around 50p from the uptrend since June. A close above recent resistance near 54p would open a run toward the 50-day at roughly 64p.
Chesterfield Special Cylinders: Thinly followed stock but interesting price action: the chart has gapped higher in recent sessions. Initial target is the top of the rising channel from 2023 at 59p, with upside to 80p by end of next month if it stays above the broken 44p resistance zone.
Cyanconnode Holdings: After disappointing history, the stock has cleared both 50 and 200-day lines. The April gap top at 10p is the immediate target, with a best-case toward 14p by the end of next month — contingent on remaining above the 200-day on a close basis.
Fulcrum Metals: TR1 activity is notable and may be driving momentum. A breakout above 8p would open the way to the low teens (targets near 14–15p). If the chart holds above the next band, interim resistance could be around 9.5p.
Genincode: The share has been under pressure but shows bullish divergence: lower lows on price for January/February while RSI traces higher. An end-of-day close above recent resistance at 1.35p could trigger a move to fill the gap at 1.9p. Keep support near 1.1p in mind as the stop area.
Hardide: In recovery mode and has already hit earlier targets. Price appears to be in a rising trend channel with a potential target toward the 30p zone, likely above 20p first — momentum driven by new contract wins.
IMC Exploration Group: IMC has exceeded expectations recently. It hit targets around 1.1p and 1.6p and now looks to challenge the old autumn 2023 high near 3.2p. A sensible stop could be the recent resistance-turned-support near 2p.
Shearwater Group: The chart has gapped higher with rising 50 and 200-day averages. Staying above the gap floor around 47p keeps a path open to the top of the recent range, possibly as high as 75p next month in a strong scenario.
Strategic Minerals: Strong momentum and breakout characteristics — already exceeded the first target near 2.4p. Next target is around 3.5p by the end of the month as the stock consolidates above old resistance at 1.9p.
Serabi Gold: Recent sell-off invited some bottom fishing. The rising trend channel is anchored around £2.50. Keep that level intact and a retest toward £3.50 by the end of March remains feasible.
Talisman Metals (formerly Ovoca Bio): The stock is forming a tight range between roughly 6p and 7.8p. An end-of-day close above the range top would suggest the low valuation may start to re-rate.
Tungsten West: Very similar structure to Strategic Minerals: bull-flag breakout and mid-move consolidation. Breakout through 24p points to at least 31p by month end, with further upside if momentum continues.
Practical takeaways
- Indices: FTSE and DAX show constructive momentum; Dow is recovering but sensitive to headlines.
- Crypto: remain cautious — Bitcoin and Ethereum face meaningful downside if they cannot reclaim resistance levels.
- Gold: still technically sound while above the 4,800 area; RSI supports a recovery attempt.
- Small caps: several setups show clear breakout levels and targets. Use defined stops and be prepared for volatility.
Markets keep offering opportunities across asset classes. Watch the key levels above — they will guide whether to press long positions or step aside until clearer confirmations arrive.
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.
