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, Cambridge Cognition, Ethernity, 80 Mile, GCM Resources, Gfinity, Goldplat, Hemogenyx, Keras, Ormonde, Power Metal, Parkmead, Smarter Web, Sunrise, Zephyr.
Markets remain a mix of steady uptrends in the major indices, a bruised but potentially rebounding crypto complex, and a handful of small-cap charts that are finally showing life. I’m sticking to simple rules: track trend channels, respect the 50 and 200 day moving averages, and watch RSI signals for early clues.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
Major indices
FTSE 100
The FTSE is still trading inside the rising trend channel that began in October. The floor sits roughly around 10,220, which has so far held up against the AI and crypto-driven volatility. As long as we remain above that floor, my near-term target is 10,500, with a best-case stretch toward 10,750 over the coming weeks.
Key levels to watch:
- Support: ~10,150 (recent January support)
- Near target: 10,500–10,600
- Stretch target: 10,750
RSI action is constructive — trying to bounce above neutral 50 and has been unusually strong since December. That’s a technical positive worth noting.
DAX
Germany’s market is quietly bullish, bouncing off the rising 50-day moving average. Buying dips to the 50-day at around 24,400 has been an easy trade recently.
Targets and risks:
- Range top: 25,000
- Record levels: 25,500 (if RSI climbs above 50)
- Downside protective level: 200-day line ~24,000
Dow
The Dow is a market still waiting for a clear direction. I’d like to see a test of the 50-day moving average around 48,500 rather than an immediate breakout. A clean test there could reset the picture and open the way back toward 52,000 once we clear resistance near 49,700.
Crypto: Bitcoin and Ethereum
Crypto remains the most-discussed story for good reason. The recent price action looks like a 50% retracement off the peak — if we take the prior high around 126,000, half of that is roughly 63,000, and that’s the zone we’ve bounced from.
Bitcoin
Technically we’ve been moving inside a falling trend channel. The bounce to ~60,000 was expected given oversold conditions, but it still needs confirmation to escape a dead-cat-bounce narrative. Important levels:
- Short-term resistance: ~66,000 — need a weekly close above this to call a proper recovery
- Recovery zone: 72,000–73,000 if momentum returns
- Watch: a decisive break of the falling channel and weekly closes back above resistance
There’s a reasonable case this could be the start of a proper rebound off the 50% retracement, but it will take a few clean weekly closes to convince me.
Ethereum
Ethereum bounced almost precisely where expected — low around 1,753 (target had been c.1,770). For a constructive medium-term picture, we want a daily close near 2,050. Downside remains while price sits below the 2,000 mark; a retest of ~1,400 is still possible in a bearish scenario.
Gold
Gold has been volatile after a swift rally up to recent highs. The chart narrows the immediate game to the 50-day moving average and the uptrend line from autumn. The 50-day sits around 4,533 (chart scale), and the nearby trendline support sits close to 4,470.
Important pointers:
- Support zone: around 4,450–4,500
- Breakout confirmation: an end-of-day close back above ~5,100 would be bullish
- RSI: remains above neutral 50 despite the pullback, which favors buying dips over selling strength
Small-cap watchlist — chart setups and targets
Plenty of obscure names are showing interesting chart structures: bear-trap island reversals, bullish divergences, fresh breakouts and rising moving averages. Here’s the short list with my practical read on each.
- Cambridge Cognition — Bear-trap island reversal after a gap down and then a gap up. Both 50 and 200 day lines rising. Target: 54–55p by the end of next month.
- Ethernity — Bullish divergence after an exhaustion gap down. Conservative traders should wait for a daily close above the 50-day (0.005) or an RSI back over 50. Probable upside to around 0.07 over the next few weeks if momentum holds.
- 80 Mile — Consolidating around prior target area (1p). A firm weekly close above 1.1p would open the way to the upper parallel of the rising channel toward 1.5p by end of next month.
- GCM Resources — Finally cleared the long-awaited 10p level (closer to 10.4p). With rising 50 and 200 day lines and RSI support, the upper channel target is around 15p in the coming weeks.
- Gfinity — Horror story historically, but showing a bear-trap rebound. Stay above 0.3p and there’s a chance to reach the top of the falling channel and the 200-day average. Wait for a daily close above the 50-day (0.036p) before calling a sustained recovery.
- Goldplat — Strong breakout through the top of the channel (above 12p). Unfilled gaps through resistance tend to be powerful; early target 15p.
- Hemogenyx — Quiet on social but a clean chart win. Current base around £9.50 loking towards £13.25 if momentum continues.
- Keras — Needs to break the November resistance at 1.6p. If it does, look for 2.3p. Both 50 and 200 day lines are now rising, which is constructive.
- Ormonde — Recently exceeded the 0.35p target, surging 60%. While above 0.35p, the next target is the old 2022 support turned resistance near 0.51p.
- Power Metal — Long-awaited move finally emerging. Top of range and channel targets near 19p by month-end, helped by buybacks, RSI improvement and a golden cross forming.
- Parkmead — A nice weekly breakout above prior resistance near 16.5p. Targeting 23p by month-end if the weekly close remains firm.
- Smarter Web (SWC) — A cautionary chart for Bitcoin treasury plays. Bear-trap rebound from below 32.5p; a re-test or move toward the 50-day (42p) is plausible but expect plenty of volatility on any strength.
- Sunrise Resources — Breaking recent autumn resistance at 0.31p. Initial target upgraded from 0.41p to a punchier 0.63p by the end of next month if momentum sustains. 50 and 200 day lines now rising, signalling a possible golden cross.
- Zephyr — Previously flagged for bullish divergence and the chart is cooperating. Break above the autumn range at 3.3p puts the initial target at 4.1p, with a best-case 5.5p by the end of next month.
Risks and what to watch
Keep a close eye on moving averages and weekly closes. For the indices, a decisive failure of 50-day support would change the constructive story quickly. For crypto, weekly closes back above the 66k zone (Bitcoin) and above 2,050 (Ethereum) are the clean confirmations I want to see before raising exposure.
Small caps are inherently choppy — respect stop losses and prefer confirmation (daily/weekly closes) before adding size. Gaps through resistance are powerful, but they are also magnets for profit-taking, so manage risk accordingly.
Bottom line
The tape is offering actionable setups: major indices holding constructive channels, crypto flirting with a meaningful 50% retrace bounce, and a clutch of small caps showing technical breakouts or bullish divergences. Trade the chart, keep an eye on moving averages and RSI, and let confirmed closes guide position sizing.
More updates over the weekend as the picture 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.
