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, Altona, Celsius, Contango, EnQuest, First Class, Hvivo, IQE, Helium One, Kendrick, Kodal, Kropz, Provexis, Pensana, Sunda, Sanderson.
Markets remain a study in narrow channels, strong momentum and the odd fragility. Several indices are grinding higher inside defined ranges while momentum indicators are flashing the kind of strength that forces respect—until they do not.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below is a concise technical read on the major indices, crypto, gold and a handpicked list of small caps that look interesting from a charting perspective.
Macro snapshot
FTSE 100
The FTSE is trapped in a narrowing channel. Key levels to watch:
- Channel top 10,560 — a break and end-of-day close above here could accelerate a run to record highs.
- Channel floor 10,320 — staying above this keeps the near-term bull case intact.
- Bear risk — a drop below the 50-day moving average (just under 10,050) would be a more concerning “rug pull” scenario.
RSI has been above 60 since late December, which is unusually strong. Typical bull markets bounce from RSI 50; sustained 60-plus bounces signal extra upside momentum—but also increase vulnerability to sharp pullbacks.
DAX
The DAX is range-bound between the rising 50-day line and resistance near 25,000. Technical pointers:
- Potential target as high as 25,700, possibly before month-end, if the 25,000 area is cleared.
- 50-day, 200-day and longer-term moving averages are rising — a healthy technical setup.
- If sellers return, expect the 200-day moving average (just above 24,000) to act as support.
Dow Jones
The Dow has flirted with the 50,000 level but failed to hold it at week end. Look for:
- Upper channel target 52,300 — achievable under the best-case scenario by the end of next month.
- 50-day moving average 48,800 — while above this, the uptrend is intact; dips to the 50-day look buyable.
- Worse case would be a revisit to the June uptrend line around 47,800.
Cryptocurrency and gold
Bitcoin
Bitcoin remains relatively stable around the 70,000 mark. Key levels and risks:
- Immediate resistance 72,000 — trading below this keeps the risk of a pullback alive.
- Support — higher low formed around 65,000 (better than the previous 60,000 low). A slide below the low-60,000s would be bearish.
Ethereum
Ethereum mirrors Bitcoin’s structure but with its own levels:
- Post-February dip peaked near 2,150. Staying above this is needed for a convincing recovery.
- Important supports: the neckline around 1,900 and the channel floor near 1,700.
- Overhead resistance to watch for a stronger move: the old November resistance near 2,622.
Gold
Gold has been a rocky ride inside a rising trend channel that began in November 2024.
- Top of the channel sits near 5,200, with an earlier overshoot above that level.
- The 50-day moving average is around 4,613. Two dips to the 50-day recently suggest limit orders near 4,600 for range entries.
- Watch RSI: failure in the upper 50s could imply a test back to neutral 50 and the channel floor below 4,600.
Selected small caps
Focusing on the most interesting technical setups rather than a scattergun list. Below are stocks with clear chart structures, defined support and a plausible path to the next targets.
Altona Rare Earths
Held by the US government, Altona trades in a broadening triangle between roughly 1p and 2.6p.
- Breakout above 2.6p could extend to 3.9p.
- Near-term support to hold: 1.9p.
Celsius Resources
Already hit two targets; now above 1p and looking for further gains.
- Next target: 1.35p (summer 2023 resistance) — possible before month-end.
Contango Holdings
Finally had a strong move up to the top of its broadening triangle around 1.37p.
- Maintain above the gap floor (0.8p) to keep the bullish case alive.
EnQuest
Breakout through near-term resistance up to 14.75p and showing signs of sustained strength.
- Target the top of a broadening triangle: 19p, possibly within weeks.
- Technicals improving: rising 50 and 200-day lines and multiple RSI rebounds above 50.
First Class Metals
Bullish divergence and a bear trap produced two RSI bounces below 31, followed by a snapback.
- Near-term target: 4.4p by end of next month if momentum holds.
- Crucial confirmation: end-of-day close above both the 50 and 200-day moving averages (above 2p).
Hvivo
Failed to clear the 200-day moving average (9p) on first attempt. A second push through 7.8p would be bullish.
- Triangle top target: 13.5p by end of next month; gap to fill up to 16p exists as a longer-term target.
IQE
Looks like a bull flag breakout in formation.
- Initial target: 14p by month-end; above 11p the chart has momentum.
- Possible extension to 18p by the end of next month if strength continues.
Helium One
Strong, sideways progression above a rising 50-day line preceded a nice breakout.
- Targets: immediate channel top at 0.76p; extension up to 1.2p with funding and corporate news permitting.
- Keep above the old resistance zone (0.69p) for confirmation.
Kendrick Resources
Vertical move since the start of the year with momentum continuing.
- Targets: 0.47p first, 0.67p second, then 0.95p and 1.25p — best case main resistance at 1.54p from 2022.
Kodal
Bouncing from a bear-trap style rebound and holding a rising 50-day line.
- Retest target: 0.60p by month-end. Best case 0.75p (three quarters of a penny) by the end of next month.
- Key level: stay above the 50-day moving average and support near 3.8p.
Kropz
Vertical move during the week following a tidy step progression. Top of the trend channel runs to 2.5p.
- Support to hold: 1.25p. Looking for channel target by next month.
Provexis
Surprised the market with a turnaround and hit the channel top around 1.18p.
- Above that, target 1.75p by the end of next month.
- Old peak near 1.25p is an important reference point.
Pensana
Regrouping after a large sell-off from October. Two RSI rebounds under 50 followed by an RSI 50-plus rebound suggest a bull flag ready to break.
- Clear 120p convincingly and the path opens to 200p within a couple of months.
- Both 50 and 200-day moving averages are rising — a constructive backdrop.
Sunda Energy
Broken above old resistance at 0.032p. The falling trend channel top, despite a spike, suggests a target near 0.05p as soon as month-end while above 0.032.
Sanderson Design
Quiet fundamentals but a clear rising trend channel with both 50 and 200-day averages turning up.
- First target: 62p. Extended upside to 76p by the end of February if a golden cross completes.
How to use these levels
- Keep risk defined: trade with stops below the nearest structural support (channel floor, moving average or previous gap floor).
- Watch RSI: repeated rebounds above 50 are bullish; failure in the 50–60 zone often precedes a retest of trend support.
- Buy pullbacks: dips toward rising 50-day moving averages in a confirmed uptrend are good tactical entries.
- Be ready for rug pulls: geopolitical shocks or sudden sentiment shifts can quickly invalidate technical setups.
Overall, the picture is constructive across many parts of the market but not without risk. Momentum is strong in several indices and in a number of small caps, yet the width of the channels and the high RSI readings mean one should be disciplined about stops and sizing. More updates tomorrow.
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.
