Zak Mir takes a charting look at some of the most closely followed small caps on the London Stock Exchange. Today’s charts are for the FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, Crude Oil, Cora, Delta Gold, EnSilica, Europa, Great Western, Hydrogen Utopia, IQE, Jersey, KEFI, Mendell, Orcadian, Tirupati, Union Jack, WeCap.
The broad picture remains one of markets trying to stabilise after a bout of geopolitical nerves, with several major indices improving technically, crypto still frustrating, commodities mixed, and a cluster of small caps continuing to offer some of the more interesting chart setups.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
FTSE 100: still capped, but not broken
The FTSE 100 remains trapped beneath the main resistance area around 10,650. That level has been tested several times, but not yet decisively cleared.
On the downside, support is still holding around 10,520, with stronger backup support at the 50-day moving average near 10,418 if the market gets a proper pullback.
The RSI is sitting in the upper 50s, which is a constructive reading. It suggests consolidation rather than exhaustion, and that keeps the door open for an eventual end-of-day close through 10,650.
If that happens, the next obvious target is a move back toward the late-February highs and record territory around 10,900. In a stronger scenario, especially if geopolitical tensions ease, the market could stretch toward 11,200, which would line up with the top of the October rising trend channel.
The bearish scenario remains a retreat toward 10,330. For now, though, the chart still leans toward a pause before another upside attempt rather than a full reversal.
DAX: breakout improving, gap fill in play
The DAX has done what it needed to do by breaking out of its falling trend channel over the past few sessions.
It is now positioned just above the 200-day moving average at 24,100, and the near-term objective is a move up to 24,600 to fill the open gap above.
If momentum continues, the better upside target would be the first major gap-down zone from late February into early March around 25,100. That may be a bigger ask in the short term, but technically it is a valid recovery target.
The key line to protect now is the 50-day moving average at 23,900. A close back below there would take the shine off what has, so far, been a decent recovery effort.
Dow Jones: progress, but still only the first step
The Dow has also managed to break out of its falling trend channel, which is an improvement, but it has not really accelerated beyond that.
The index is holding above the 50-day line, and the main upside target is still 49,800, effectively the level from before the latest Middle East-driven shakeout.
As with the DAX, the setup remains constructive as long as support holds. The level to watch is the 50-day moving average at 47,942. Lose that, and the recovery starts to look much less convincing.
Bitcoin: slightly better, still frustrating
Crypto remains awkward, and Bitcoin continues to be a frustrating chart, although conditions have improved a touch.
Bitcoin is back up at resistance above 75,000, and the next major test is the final resistance from the decline at 79,000.
If that breaks, the more ambitious target becomes 86,000 and the 200-day moving average, ideally by the end of next month. Getting there by the end of this month would be a very strong result, but that may be asking a bit much in the current environment.
On any renewed weakness, the first important support is the 50-day moving average at 69,000. Beneath that, the real danger zone is the February uptrend line around 66,000. If Bitcoin breaks that trend support, then another leg lower becomes a real risk.
For now, the market looks more like a recovery attempt than a breakdown, but it is not out of the woods yet.
Ethereum: still needs to clear the channel top
Ethereum is lagging Bitcoin and remains below the top of its falling trend channel, which comes in around 2,440.
As long as the price remains under that level, there is still concern that another leg down could develop. Immediate support is the 50-day moving average near 2,120, and below that the more important support sits around 1,960, where the February uptrend line comes in.
Given how the chart has been getting stuck, dips back toward the 50-day line may actually offer the cleaner potential entry points, assuming support continues to hold.
Gold: stalled and surprisingly flat
Gold is not giving away very much at the moment.
The price remains capped beneath both the 50-day moving average just under 4,900 and the top of the falling trend channel around 4,830. That keeps the upside focus on a move back toward the 50-day line as the first recovery target.
On the downside, recent support around 4,600 is the area that ideally continues to hold.
What stands out here is how flat the chart looks considering the backdrop. The RSI is sitting bang on neutral around 50, so momentum is not offering much guidance either. This is a market waiting for its next proper cue.
WTI crude oil: range trading after the heat comes out
Crude has cooled off and moved into the lower end of its broader range.
The expectation now is for 95 to act as the ceiling and 84, roughly where the 50-day moving average and recent support sit, to act as the floor.
In short, this looks more like a range market than a trend market for the moment. Some of the zip has been taken out of oil as traders wait to see whether the next geopolitical move widens the channel again or leaves things contained.
Small cap stock charts: where the action is
The individual stock section is where the more aggressive chart setups appear, especially among resource names, technology plays, and turnaround situations.
Cora Gold: funding in, chart still wants more: Cora Gold has had the funding come through, which removes a major uncertainty. Despite that, the share price has not yet fully reflected the improved picture. The previous target around 12.75p has been achieved, and above that the next objective is 19p, which marks the upper boundary of the one-year rising trend channel. As long as the stock holds above 10p, the chart suggests there is more upside to come.
Delta Gold: one of the standout movers: Delta Gold continues to look like one of the favourites of the year so far. The earlier 84p to 85p target has already been exceeded, which shifts focus toward the upper parallel of the rising trend channel near 125p. The key condition is that the shares remain above, or at least on the right side of, 80p. It has been a very strong move already, and the chart still argues for more.
EnSilica: breakout with potential legs: EnSilica is an interesting one. It has broken above resistance around 52p, and that opens the way toward 70p by the end of next month. The market cap is only about £61 million, which is small enough to keep interest alive if the company starts to gain serious traction as a technology story. The RSI has bounced above the neutral 50 area, and that is typically a helpful sign when trying to judge whether a breakout has genuine follow-through. Worst case, and also a possible entry area, would be a dip back toward the 50-day moving average around 49p.
Europa Oil & Gas: not on fire, but still constructive: With a name like Europa Oil & Gas, some might expect fireworks, but the chart is more measured than explosive. There is a broad rising trend channel in place from last summer, although the trajectory looks less steep than first thought. That tempers the upside a bit. Even so, the stock is above the floor of the channel and above the 200-day moving average around 1.3p. The initial target is a move toward 2p, potentially by the end of next month. If the oil rally continues and there are no surprises from the company, then the best case by the summer could be around 2.8p. Any dip toward the 50-day line near 1.46p would likely be treated as a near-term buy signal.
Great Western Mining: flavour of the month: Great Western Mining has become one of the more talked-about names recently, with some people wondering whether it could follow the path of Guardian Metal. The first target at 2.7p has already been met. Above that, the next target is the upper boundary of the rising trend channel at around 3.75p, hopefully as soon as the end of next month. It may not be Guardian Metal yet, but technically it does look as though it is trying to build toward something bigger.
Hydrogen Utopia: chart still alive above 3p: Hydrogen Utopia remains an intriguing chart, particularly given its link to sustainable aviation fuel. Technically, the key remains the move above 3p, which continues to point toward 4.75p. The story may get more market attention if aviation fuel pressures become more obvious. For the bullish case to stay intact, the stock ideally holds above its rising 50-day moving average at 2.66p.
IQE: stealth rise turning into something much bigger: IQE has been one of the best stealth movers around. A sequence of upside targets has been hit one after another, from 11p to 15p, then 35p, and the move has simply kept going. The latest technical development is a break above old 2023 resistance at 60p. Once above that, there is not much obvious resistance before 70p plus. At this stage, the challenge is less about finding reasons for the move and more about not underestimating a chart that keeps delivering.
Jersey Oil & Gas: channel target up at 155p: Jersey tends to be a strong mover when it gets going, and the current setup is encouraging. A rising trend channel has been in place since December, and the top of that channel is now heading toward 155p. In an ideal scenario, that becomes the target for the end of next month. The key support is the 200-day moving average at 115p. The recent RSI rebound from the 50 area is another positive technical signal.
KEFI: controversial perhaps, but the range is clear: KEFI may generate debate, but the chart itself is fairly straightforward. There is a range between roughly 1.1p and 1.75p, and the aim is for a push toward that upper boundary, ideally by the end of next month or sooner. The bullish angle comes from an extended bounce and bear-trap rebound from below the rising 200-day moving average. That line is the line in the sand for the current positive setup, with the broader upside focus shifting toward the 2p zone.
Mendell Helium: target hit, more upside possible: Mendell Helium has already reached the 5.8p target. Above that, the next area to aim for is 8.5p to 9.5p, corresponding to the upper parallel of the rising trend structure. That target is in play for the end of next month. Momentum has also been supportive, with multiple RSI rebounds above the 50 level since the beginning of last month. Ideally, the stock now holds above the 5.8p breakout area on any pullback.
Orcadian Energy: North Sea theme back in focus: Orcadian has perked up again, helped by renewed chatter around North Sea drilling. The stock has broken a trend line from January, and above 15p the next target becomes 24p for next month. The recent RSI 50 rebound reinforces the idea that this breakout may have more to offer.
Tirupati: renewed and reinvigorated: Tirupati has come back to life and looks a good deal healthier than it did previously. The shares have broken recent resistance, and above 1.6p the target is a retest of the range high from 24 March at around 2.5p. The chart is not the neatest on the list, but the recovery setup is there and worth respecting while momentum holds.
Union Jack Oil: bouncing from the right area: Union Jack Oil is currently bouncing from a rising 50-day moving average, with the RSI also recovering around the 50 zone. The initial target is 4p, where the 200-day moving average sits. Beyond that, if conditions are favourable and placings or other company-specific issues do not get in the way, the next target would be around 5.3p. The central point here is simple: the bullish case works best while the shares remain above the rising 50-day line.
WeCap: high risk, but 50-day line now crucial: WeCap is very much in the speculative category, definitely not one for widows and orphans. There has already been a dramatic one-day move, and it remains to be seen whether that was just a flash in the pan or the start of something more durable. The crucial level is the 50-day moving average at 0.67p. If the shares can stay above that on an end-of-day close basis, it would suggest a recovery back toward the main resistance area around 1.2p. As ever with this sort of chart, discipline matters more than excitement.
What matters most from here
A lot of charts are improving, but many are still only one confirmation away from either turning into proper breakouts or slipping back into indecision.
The main levels worth tracking are:
- FTSE 100: 10,650 resistance, 10,520 support
- DAX: 24,600 gap-fill target, 23,900 key support
- Dow: 49,800 upside target, 47,942 support
- Bitcoin: 79,000 resistance, 69,000 then 66,000 support
- Ethereum: 2,440 trend channel resistance, 2,120 and 1,960 support
- Gold: 4,900 recovery target, 4,600 support
- WTI crude: 95 ceiling, 84 floor
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.
