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, Contango, Delta Gold, Empyrean, Falcon, Harvest Minerals, Kistos, Pulsar, Switch Metals, SkinBio, Vault, Wood Group.
Markets have turned nervous. Geopolitical headlines have punctured recent gains and pushed many indices back toward key trendlines. Below is a concise, chart-driven read of the major indices, crypto, gold and a curated selection of small-cap setups to watch over the coming weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Across the board the tone is defensive. Momentum indicators are rolling over on several indices and short-term trend channels are under pressure. The immediate focus is whether buyers can defend important moving averages and trendline floors, or whether we see a deeper retracement toward long-term support zones.
FTSE 100
The FTSE 100 has given up recent gains and is trading beneath short-term support levels. Key levels to monitor:
- Immediate resistance: 10,670 (daily close required to restore bullish case)
- Near-term support: 10,500 — floor of the channel from last October
- Deeper support: 10,285 — 50-day moving average
Relative strength has slipped below 60 for the first time since December, signalling the end of the recent 10%+ rally unless the index can reassert itself above 10,670 on a close basis. A recovery above 11,000 would be the mid-term target, but that looks distant while on-the-ground newsflow remains negative.
DAX
The German market has been weak for some time and recent gaps have pushed prices toward longer-term moving averages.
- Near-term line of defence: uptrend line around 23,900
- If that breaks: 22,900 — November support
- Important bullish sign: end-of-day close back above the 200-day moving average at 24,176
Holding the uptrend is crucial. A failure would likely trigger a more extended correction toward prior winter lows.
Dow Jones
The Dow is trading near the floor of its rising channel from November and momentum has faded.
- Key resistance to reclaim: 49,110 — the 50-day moving average (daily close needed)
- Near-term support/target: 48,000–48,100 — channel floor
- Deeper support: 46,000 — 200-day moving average and November support
Given current selling pressure, the path of least resistance is lower unless the Dow can quickly recover above the 50-day line.
Crypto: Bitcoin and Ethereum
Cryptocurrencies have shown relative resilience compared with equities but remain inside falling short-term channels.
Bitcoin
- Line in the sand: 68,500
- Range support: 62,000 (short-term range trade)
- Downside channel target: long-term channel points toward ~52,000
- Upside resistance: 72,000 — prior resistance on the way down
Ethereum
- Immediate resistance: 2,060
- Near-term support: 1,800
- Channel downside: risk toward 1,580–1,560 by month end if momentum remains negative
- RSI has failed to hold above neutral 50 on three occasions, indicating persistent downside bias until proven otherwise.
Gold
Despite risk-off headlines, gold is behaving more measured than dramatic. It has found support around the old resistance line and remains within a rising channel.
- Current support: 5,280 (top of the late-2024 channel)
- Near-term upside: 5,595 — January resistance
- Best case this month: 5,860 — upper parallel of the rising channel
- Downside to watch: 5,100 if the support structure gives way
Gold remains a defensive asset but needs a decisive breakout to make an aggressive bid higher.
Selected stocks to watch
In a soft market it pays to scout names with constructive setups. Below are a handful of small-cap charts showing clear patterns and specific trigger levels.
Contango: Above the 200-day moving average at 0.87p. If momentum holds expect a move toward the top of the range, potentially up to 1.40p over the next month.
Delta Gold: Maintaining a rising channel from January. As long as price stays above 60p, a target of 80p is reasonable. A steeper move toward £1 is possible on stronger momentum.
Empyrean: Gapped higher on positive news and now trading above rising 50 and 200-day lines. Broadening triangle breakout aims at 1.70p with a rising-channel bias while above recent support near 0.07p.
Falcon Oil & Gas: Strong momentum since gapping through the 50-day in December. Floor of the channel near 13.6p. Upside target around 22p in the near term.
Harvest Minerals: 50 and 200-day moving averages are rising, hinting at a rising channel. A daily close above 0.35p would confirm the breakout, opening a path toward 0.55p.
Kistos: Natural gas exposure is helping. First target hit around 230p. Next target is the upper parallel of the long-term channel near 320p, ideally by the end of next month while staying above 230.
Pulsar: Recovered after a placing. Above 80p the gap should be filled toward 91p during March, with a best-case channel top near 110p.
Switch Metals: Showing life after a retreat from a second target at 17p. If it holds above 13.3p the next target is around 22p.
SkinBio: Improving momentum after a buy signal from a higher RSI despite a lower price in February. Initial target to fill the gap at 12.25p, with an intermediate floor around 7.80p.
Vault Ventures: Trading above the rising 200-day line at 1.6p. Initial upside target at former resistance near 2.88p over the next month.
Wood Group: Gapped through resistance above 27.25p and is showing rising 50 and 200-day lines. A technical target sits around 33p, although clarity on the catalyst is limited.
Practical takeaways
- Indices are vulnerable until they reclaim key short-term moving averages and trendline floors.
- Bitcoin and Ethereum remain inside falling channels; degrees of support and resistance are clearly defined and can be traded as ranges.
- Gold is the defensive pick but needs a breakout to accelerate gains.
- Several small-cap UK equities have constructive setups; focus on daily closes above the trigger levels listed to validate breakouts.
Keep risk management tight. In choppy conditions, prioritise clear price confirmation — daily closes above or below the levels highlighted — before committing to fresh positions.
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.
