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, African Pioneer, Active Energy, Eco (Atlantic), Ethernity, Ensilica, First Tin, Gattaca, Hamak, Karelian, Nuformix, Richmond Hill, Wishbone, WeCap.
Markets opened 2026 with a mix of steady momentum and selective breakouts. Global indices nudged higher, cryptocurrencies showed tentative recovery signals, gold weathered a late-year pullback, and a handful of small-cap names are flashing chart setups worth watching.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
FTSE 100
The FTSE cracked the 10,000 mark early today and is aiming for the channel top from February around 10,150. That looks like a reasonable minimum upside while price remains above the recent resistance-turned-support area near 9,920 on an end-of-day basis. Notably, the RSI has not reached extreme overbought levels — it remains below 70 — and the index has produced multiple RSI 50 rebounds. That sequence of rebounds adds conviction to a push toward 10,150, with a stretch target near 10,500 if momentum accelerates.
DAX
The DAX has been range-bound since May between roughly 23,000 and 24,700, but signs point to a breakout. The top of the channel sits near 25,700, a target that appears achievable by the end of the month while the index stays above support around 24,200. The 50-day moving average is rising close to the 24,000 area, and a failed breakout would likely pull price back to that rising 50-day line rather than trigger a deeper collapse.
Dow Jones
The Dow presents a more mixed picture. It remains above RSI 50, but the risk of a test of the 50-day at about 47,500 is real. A modest retracement to that level would not be catastrophic; the bullish scenario targets 49,000 by the end of January and a loftier 50,000 by the end of Q1 if upward momentum resumes.
Cryptocurrencies
Bitcoin
Bitcoin suffered a poor finish to 2025 and is still working through the aftermath of an October trend-line break. A key trend line sits around 86,000; reclaiming and holding above that would strengthen the bullish case. The immediate technical hurdle is the 50-day moving average near current levels, followed by December resistance around 94,400. A sustained clear above those zones would make a run toward the 200-day near 106,000 plausible. Conversely, failure could expose a test of the mid-80,000s or, in a worst-case retracement, the channel floor just under 82,000. The encouraging sign is the RSI moving back above neutral 50.
Ethereum
Ethereum’s battle around the 3,000 mark has resolved positively for now. Price is back above the 50-day moving average at roughly 3,005, and December resistance near 3,450 becomes the near-term target, potentially by the end of the month. On the downside, the April uptrend line — around 2,880 — would be the structural support to watch.
Gold — dip-buy opportunity while trend holds
Gold experienced a rough patch but remains above the uptrend line from October, near 4,250. That level is the critical support: as long as price holds above it, pullbacks look like buying opportunities. An RSI 50-plus rebound has already signalled renewed buying interest. Given the current rate of recovery, a move toward 4,700 by the end of next month is within reach.
Small-Caps
Several micro- and small-cap stocks are showing constructive chart patterns: RSI rebounds, moving-average cross signals, falling wedges, triangle breaks, and gap fills. Below are short, actionable notes on the names currently catching attention.
- African Pioneer: Rising trend channel base; above the 200-day line near 0.92p. Short-term target 1.12p while holding the 50-day support at about 0.01p.
- Active Energy: In a falling channel that resembles a falling wedge. A daily close through about 0.075p could set up a move toward 0.1p by month-end if momentum confirms.
- Blue Star: Triangle break prospect through around 10p; above that expect November resistance at 13.5p. Bullish divergence on the RSI reinforces the breakout thesis.
- Eco (Atlantic) Oil & Gas: One of the stocks for December, we did say above 25p; there was nothing on the chart until 45p. Now the shares are already proving that, with a view to the moment as long as we don’t close today below 29p. We are looking for 45p this month or sooner.
- Ethernity Networks: Bullish divergence with lower lows in price but a higher RSI trace. A close above the 50-day near 0.0076 could lead to filling the gap toward 0.12 within the month, conditional on staying above 0.05.
- Ensilica: Showing improvement with both 50- and 200-day moving averages rising. A golden cross is forming and the minimum upside target is about 61p by month-end, provided there’s no close back below the November resistance at 45p.
- First Tin: Multiple RSI 50-plus rebounds give this breakout endurance. Above recent broken resistance around 9.44p, the next level to watch is 15p.
- Gattaca: Pushing through a rising 50-day line around 94p. Flip to bullish while above that moving average with a short-term target near 124 by month-end.
- Hamak: Hated by the bears but interesting technically — broken above the 50-day and targeting the 200-day just under 2p while remaining above the 50-day near 1.23p.
- Karelian Diamond: Potential falling wedge breakout above roughly 0.52p. If confirmed, the top of the broadening triangle around 0.80p becomes reachable by month-end.
- Nuformix: Working on pushing through the 50-day near 0.29p. A close above that opens the way toward the channel top near 0.43p.
- Richmond Hill: Two unfilled gaps to the upside. Maintaining price above the latest gap top near 1.4p points toward a target near 2.44p by month-end.
- Wishbone: Bounced from the 04s and is trading above the 50-day line around 80p. A channel target near 111–115p is possible while staying above the 50-day.
- WeCap (Recap/Hot Rocks mention): Bounced from the 200-day around 1.72p. A reasonable near-term target is 2.3p, and further upward ratcheting is possible as a lock-in period approaches.
Practical trading takeaways
- Watch RSI 50 rebounds. Multiple rebounds from the midline are a useful leading indicator that a trend has stamina.
- Respect moving averages. The 50-day is acting as near-term support in many setups; the 200-day remains the longer-term structural trend reference.
- Use clear levels for risk management. For each trade, define a stop level (for example, a close back below recent broken resistance or a key moving average) and a target tied to logical chart resistance.
- Timeframes matter. Several targets are realistic by the end of the month, while larger index targets may take until the end of Q1 to play out.
Markets will provide fresh clues over the coming days. The themes to monitor are whether indices hold their recent gains, whether the crypto 50-day tests turn into sustained breakouts, and which small-cap chart patterns deliver follow-through. More updates will be run over the weekend as price action develops.
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.
