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, Bradda, Coinsilium, Conroy, Delta Gold, Ethernity, Oracle Power, Oxford Biodynamics, Orosur, Power Metal, Rome Resources.
Markets are showing a generally constructive tone across major indices, cryptocurrencies and a selection of small-cap stocks. A common theme is momentum trapped inside rising trend channels, supported by rebounds around the RSI 50 line and the 50 and 200 day moving averages.
Below are the key levels, likely scenarios and what to watch next.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The FTSE is trading above the previous target of 10,180, which aligns with the top of a rising trend channel that began in February last year. While momentum could carry the index as high as 10,500 by the end of next month, the immediate downside risk on a pullback is towards 10,150. Staying above 10,180 keeps the bullish case intact.
DAX
A solid breakout to start the year has cleared initial resistance. The next measured targets are:
- Initial target: 25,800
- Extended target: 27,000 by the end of next month (if momentum continues)
On the downside, prior resistance around 24,700 is now an important support to hold.
Dow
The Dow is wrestling with the big psychological handle at 50,000, which also corresponds to the top of the long-term rising channel. A clear break through opens a path toward 52,000 by the end of next month. Defensive levels to watch are the old December resistance zone around 48,700. Multiple RSI bounces above neutral 50 point to a strong internal tone, and the sideways range around 49,000 looks like a bull flag that could precede an upside move.
Cryptocurrencies
Bitcoin
Bitcoin has shown a decent rally off support, rebounding from above the rising 50-day moving average and producing an RSI 50 rebound. Key levels and scenarios:
- Immediate support: old resistance around 95,000
- Target on the upside: the 200-day moving average around 106,000 (look for this by the end of next month)
- Risk scenario: a rug pull toward the 50-day line near 90,000, with the floor of the rising trend channel around 86,000 as the worst-case for now
Ethereum
Ethereum mirrors Bitcoin’s structure: old resistance near 3,200 should now act as support following an RSI 50 rebound. The 200-day moving average and October resistance sit around 3,649, a reasonable upside target over the coming weeks. Downside pull levels include an uptrend line from April near 2,930 and the 50-day moving average at 3,068. Staying above the 50-day keeps the recovery story alive.
Gold
Gold is consolidating around prior resistance. Important levels:
- Support to hold: prior resistance around 4,550
- Potential rug-pull level: the floor of the channel near 4,415
- Upside target: top of the channel at around 4,800 (possible by the end of next month)
Recent wobbles have stopped players on both sides, but keeping above 4,550 preserves a constructive outlook.
Selected small-cap stocks
Bradda Head Lithium: After a bear-trap rebound from below 0.9p, the recovery is targeting the 200-day area around 1.1p and the top of the channel near 1.5p. A full stretch target would be the October peak around 2.4p by the end of next month if the bounce continues.
Coinsilium Group: After a bleak period, Coinsilium gapped up from the low and cleared January resistance at 3.25p. Initial target is 4.1p, with a best-case of 5.5p by the end of next month—contingent on a stronger crypto market.
Conroy Gold: Conroy’s chart has improved with the stock travelling inside a rising trend channel. Near-term target is 17p, possibly as soon as the end of this month. Best-case into Q1 is up to 24p (upper parallel from the May channel). The longer it stays above the old October resistance around 13.75p, the healthier the setup.
Delta Gold: Following a trend line break around 14.5p, the initial target was 26p, which the stock is approaching. Clearing 26p opens a path to about 37p by the end of next month. Keep an eye on the old resistance near 23p as interim support.
Ethernity Networks: This less liquid name has staged a recovery with bullish divergence—lower lows in price but higher RSI. A break above the 50-day line at roughly 0.0062p is constructive. A clean break of 0.008p could see a gap fill toward 0.12p by the end of next month, with the critical level being the 50-day support.
Oracle Power: One of the better recent calls. Oracle Power broke out of a triangle around 0.04p. The initial pie-in-the-sky target near 0.08p was exceeded—current price is around 0.083p. A retest of October resistance near 0.15p is possible. Best-case for the near term is up to 0.13p while remaining above 0.08p.
Oxford BioDynamics: Showing a high-octane recovery profile. The stock bounced off the 50-day line near 26p and delivered an RSI 50 rebound. A move toward the 200-day moving average around 38p is plausible by the end of next month. There has not been much fresh company news recently, so any positive update could accelerate the move.
Orosur Mining: Transitioning from small-cap to mid-cap territory, Orosur has cleared a resistance line around 23.8p and is now trading above 25p. The rising trend channel from February last year points toward a target around 42p at the top—potentially achievable by the end of next month.
Power Metal: Despite an ongoing share buyback, Power Metal remains mid-teens in price and is trading inside a rising channel from November last year. A reasonable near-term target is 19p, with recent support around 14p. The buyback keeps a floor under the stock but momentum needs to push it into the 20s for a more bullish narrative.
Rome Resources: Given the strong backdrop for copper and tin, Rome Resources might have been expected to perform better, but recent director buying is a positive sign. The stock has cleared the 50-day moving average at around 0.20p and is targeting the top of a falling trend channel near 0.37p by the end of next month. The 200-day line at roughly 0.27p is starting to slope upward, which supports a constructive medium-term outlook.
Key themes and what to watch
- Rising trend channels dominate the picture across indices, crypto and several stocks. Staying above the lower channel lines keeps the bullish scenarios intact.
- RSI 50 rebounds have been a reliable early sign of renewed momentum—multiple names show this trait.
- 50 and 200 day moving averages are important anchors. A sustained move above these levels increases the chance of the upside targets being reached; breaks below raise the risk of deeper retracements.
- Support levels to respect—these are the “do not cross” lines for bulls: FTSE 10,180; Dow ~48,700; Bitcoin ~95,000; Ether 3,068; and company-specific supports listed above.
Overall, the market tone looks constructive provided key supports hold. The next few weeks will be telling: keep an eye on whether breakouts hold or if any short-term “rug pull” tests those lower trend lines. More updates will clarify which targets are most likely to be hit.
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.
