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, Crude Oil, Arkle, Ajax, B Hodl, Catenai, 80M, First Development, MobilityOne, Nuformix, Quantum Blockchain, Rainbow Rare Earths, Tap Global, Zenith Energy.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market snapshot
FTSE 100
Decent rebound in place. The market has bounced back above the rising 50-day moving average — a constructive sign while it holds. Key levels to watch:
- Support: the light horizontal line around recent lows and the rising 50-day line (current focus).
- Immediate resistance: 10,636 on the way up.
- Danger zone: an end-of-day close back below the 50-day line would open a retest toward yesterday’s support near 10,082.
- Momentum check: watch the RSI cross above 50 (currently 47.9) for confirmation of a sustainable lift.
DAX
Gapped higher after recent weakness — a classic bear-trap gap reversal from just under November support. For now the bias is bullish while price stays above the old resistance turned support.
- Support to hold: yesterday’s resistance at 33,500.
- Gap-fill target: the next down-gap near 34,500 (watch the coming days).
- Trading environment: still a bit of a sniper’s alley — be selective.
Dow Jones
Bounced off what looks like the floor of the channel rather than the 200-day line. Range dynamics remain dominant.
- Channel range: roughly 46,000–50,000.
- Near-term resistance: the 50-day moving average around 49,100.
- Key support-turned-resistance just cleared: about 47,700.
Crypto and commodities
Bitcoin
Missed some of the initial excitement but trying to get going again off February support.
- Support: old February area around $60,000.
- Near resistance: channel ceiling c. $68,200.
- Targets while above that area: the 50-day moving average near $73,000, with a best-case move to c. $81,000 by month end.
Ethereum
Less spritely than Bitcoin but the technicals point to a bounce while key support holds.
- Support: around $1,900.
- Immediate target: the 50-day line near $2,224.
- Watch the falling trend channel; RSI uptrend in the momentum window supports at least a run to the 50-day line.
Gold
Found support on the right side of the 5,000 level and bounced above a rising 50-day moving average. RSI is back above neutral 50 — a continuation signal.
- Short pullback idea: limit orders around 4,900 if price retraces to the 50-day line.
- Initial upside: channel top near 5,310.
- Best case over 2–3 months: the upper parallel toward 5,880.
Crude oil
Recently added to the watchlist. Old resistance has become new support and price is resting around the high 80s.
- Current resting point: above $88.
- Favoured range: perhaps $84–94 in the near term.
- Key psychological level to keep an eye on: $100 — markets seem reluctant to push decisively above it right now.
Small-cap watch
Picking through a batch of small-cap names showing early signs of accumulation, breakouts or interesting setups. Levels are given in pence where used.
Arkle Resources
- Touched the base of a rising trend channel — needs to hold above 0.65p to stay constructive.
- Initial upside: around 0.87–0.88p if momentum continues.
- Maintaining the January peak near 0.57p is important for the bias.
Ajax Resources
- Director buying has helped the shares firm up. Bounced off the November uptrend line.
- Near-term targets: first 9.2p, then the top of the rising channel (as high as ~14p by next month if momentum accelerates).
- Needs to reclaim and hold around 9p for a clearer run.
B Hodl
- Broken out of the wedge in place since October — cleared 6.4p.
- Targets: initial c. 7.75p, gap-fill up to ~10.5p as the best case over the coming month while staying above 6p.
- RSI has crossed neutral 50 and candles show accumulation rather than selling pressure.
Catenai
Recently moved to the top of its range and is challenging key resistance points.
- Short-term resistance: around 0.35p (top of range).
- Clear break and hold above 0.35p and a close above the 200-day average (0.29p) would be constructive toward 0.60p in the medium term.
80M
- Shares are finding support above a rising 50-day line (currently 0.93p).
- Targets: first the older target near 1.15p, then potentially up to 1.6p by the end of next month.
First Development Resources
- Despite some communication gaps from management, technicals show bullish divergence and a bear-trap rebound from c. 2.3p.
- Targets: immediate aim around 2.8p with upside if sector momentum returns.
MobilityOne
- Bounced above a rising 50-day line at around 6.35p.
- Targets: retest of this year’s highs at 12p as a best-case this month, with further scope to 14p if momentum sustains.
Nuformix
- Orphan drug news has pushed the shares higher. Rising 50-day and 200-day lines support the move.
- Current support: around 0.26p. A run to the top of the range near 0.50p is possible by the end of April, though that would be a stretch.
Quantum Blockchain
- The chart shows a falling trend line with a bullish divergence in momentum — a regroup may be underway.
- Short-term pull to 0.54p is plausible, with the 200-day average around 0.69p as a later target.
Rainbow Rare Earths
- Nice breakout through initial March resistance at 22p.
- Upside: chasing toward 31p by the end of the month looks reasonable while the RSI remains supportive.
Tap Global
- Received US$1.8m recently and the shares jumped 17% — a welcome cash injection.
- To consolidate a recovery the shares need to stay above around 1p, targeting the 200-day 1.8p if momentum returns.
- Still a disappointing story overall until the seller who typically hits spikes takes a break.
Zenith Energy
- Broke the resistance at 3.5p and moved to the target of 5p.
- Holding an end-of-day close above 5p could open a run to 7p by month end.
- Potential arbitration news is on the horizon — keep position sizing sensible and stay above 4.25p to retain the bullish case.
Quick checklist for traders
- Indices: stay above the 50-day moving averages for a constructive bias; watch RSI 50 cross for confirmation.
- Cryptos: Bitcoin needs to clear the channel ceiling ($68k) to target the 50-day; Ethereum wants to hold $1,900.
- Gold and oil: gold has a clean RSI bounce and rising 50-day; oil looks range-bound between $84–94.
- Small caps: focus on clear holds above rising 50-day or 200-day lines and watch for volume-backed breakouts
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.
