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, Amaroq, Dillstone, Diales, EnQuest, GEO, Guardian Metal, Gfinity, Jersey, Kosmos, Ondine, Tertiary, Xtract.
Markets are showing a mix of steady strength in the major indices, a tentative stabilisation in crypto, and plenty of opportunity (and volatility) among small-cap stocks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below is a chart-driven, practical summary of key levels, likely paths and stocks to watch over the coming weeks.
Major indices
FTSE 100
The FTSE is tracking up inside a clear rising channel that began at the end of October. The top of that channel sits near 11,000, a level that looks achievable by the end of next month if the current momentum continues.
Key levels to watch:
- Support / pivot: 10,650 (old resistance-turned-support)
- Channel floor: 10,500 (worst-case target if momentum fades)
Technically the market looks robust — RSI has not been under 60 since late December and has bounced near the 70 zone twice. While price remains above the 10,650 area, the underlying structure favours higher levels.
DAX
The DAX is behaving like a slower, weaker cousin of the FTSE, trading between the 50-day moving average (~24,700) and recent resistance at 25,300. Expect continued bounces close to the 50-day line and a likely move toward the top of this range. A stretch target by the end of next month is around 25,700.
Dow
A brief dip under the channel floor turned out to be a blip. Price has recovered into the channel, creating a classic bear-trap setup. The immediate floor to respect is about 49,000. Staying above that raises the probability of a move toward 51,000 by the end of next month.
For conservative traders, wait for the RSI to bounce back above neutral 50 — it’s currently near 48.
Cryptocurrencies
Bitcoin
Bitcoin has clawed back above the previous range floor at 65,000, putting the current range at roughly 65,000–72,000. That’s constructive, but recovery needs a break above the range high to confirm a fresh uptrend.
- Immediate support: 65,000
- Key resistance: 72,000 (clear break needed to signal a return to strength)
- RSI watch: needs to clear an RSI resistance line around 38 to negate recent negative RSI failures
Downside case (for now) — a slide below 60,000 would revive the risk of a deeper correction. For the moment that scenario looks less likely.
Ethereum
Ethereum has managed to hold above the previous floor around 1,900, keeping the immediate range at 1,900–2,150. Momentum is fragile: RSI sits in the upper 30s and must rally through that band to sustain the move up.
- Support: 1,900
- Danger zone: below ~1,800 opens up a move to ~1,580
- Objective while above 1,900: a return toward 2,150
Gold — near the top of its channel
Gold remains on a familiar rocky ride but is currently trading close to the top of its rising channel. The immediate top sits around 5,240, with recent session support coming in above 5,100. If price manages an end-of-day close through 5,240, the previous January resistance towards 5,600 becomes a plausible upside target by the end of next month.
Three RSI rebounds toward neutral 50 in recent weeks add to the constructive picture while price stays above the channel floor.
Small-cap watchlist — setups, targets and technical signals
Small caps remain the area of greatest opportunity and greatest volatility. Below are the most interesting chart setups and what to watch for each.
- Amaroq: After an overshoot above £1.50 and a painful retracement, the stock looks set to close above a rising 50-day line (£1.05). Above that, recent resistance at £1.26 is the next target, with upside into March plausible.
- Dillistone Group: A clean V-shaped bull flag and a recent golden cross make this a textbook breakout candidate. The initial target near 13p remains intact, with an upper triangle parallel target approaching 19.5p by the end of next month.
- Diales Group: Similar to Dillstone: a V/U-shaped reversal, a breakout through recent resistance at 26p, and a golden cross already in place. The long-term triangle top from 2022 sits near 40p as a stretch target while price holds above 25p.
- EnQuest: Vertical moves this month have put EnQuest close to the top of a broadening triangle at about 19p. Key support is the recently broken resistance near 15–12p. The rally began with bullish divergence and a helpful bounce from the 50-day line.
- GEO: Potential rising trend channel in play. A successful close through the 50-day line (0.14p) would open a move toward the channel top near 0.21p. Keep a protective level near 0.12p.
- Guardian Metals: Quiet but strong. The previous target around 208p was hit on three occasions; above that the upper parallel of the rising channel points toward 273p.
- Gfinity: Recovered through the 50-day line and above recent broken resistance at 0.36p. The top of its channel and the 200-day line sit near 0.62p as a target. The move started with bullish divergence — a positive sign for continuation.
- Jersey: The stock has fulfilled a near-term call, trading toward the top of a channel at £1.26. Staying above recent broken resistance at £1.13 keeps the path toward the one-year resistance at £1.60 plausible before the end of next month.
- Kosmos: Good disposal news has pushed price above the top of a channel at about £1.43. The next upside stretch is toward £2.06, with the recent gap floor near £1.60 as a key support level.
- Ondine: Gapped up off the lows with several consecutive bullish days. The shares are approaching the top of a falling trend channel near 13p. The 50-day and 200-day lines are both rising, signalling that a golden cross may be forming — often the strongest part of a stock’s recovery run.
- Tertiary Minerals: Bouncing off the floor of a rising channel that began in September. The channel top is near 0.16p, and the 50-day sits close to 0.80p. RSI has pushed back above neutral 0.50p, which supports further upside while those levels hold.
- Xtract: Rangebound for much of the year between roughly 0.70p and 1.10p, but signs of a breakout are emerging with support above the rising 50-day line (0.84p). Three RSI rebounds toward neutral 50 suggest a potential push toward 1.35p if momentum builds.
Practical trading notes and risk management
Across the board the best approach is to respect the technical levels laid out above. Use clear stop points under key support lines and avoid increasing size on names that have already made vertical moves without a healthy consolidation.
Watch the RSI behaviour: repeated rebounds around neutral 50 or climbs out of the 30s can be leading indicators for further upside. Conversely, failure to hold the channel floors or previous resistance lines turning into new resistance is a reliable early warning.
Summary
FTSE and the major indices look constructive while staying above immediate support. Bitcoin and Ethereum are stabilising but need range-breaks to confirm a recovery. Gold is testing the top of its channel and could accelerate higher with a decisive close above 5,240. The small-cap universe contains a number of attractive technical setups — golden crosses, V-shaped recoveries and breakouts — but with the usual caveats about volatility and liquidity.
More updates will follow as price action develops and key levels are tested.
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.
