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, EnergyPathways, Galantas, Harena, HeliumOne, PetroTal, Quantum Blockchain, Synergia, SkinBio, Touchstone, Thungela, Tullow.
Markets are showing a weaker tone across the board. Several major indices have flipped below their neutral RSI 50 line, key reversals have appeared, and a few important moving averages are being tested.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below are the practical levels, what they mean, and a few small-cap setups that deserve attention.
FTSE 100
- Momentum: RSI has slipped below 50.
- Resistance: recent failures at 10,680 and the peak around 10,636.
- Support: the “line in the sand” sits near 10,318 — essentially the 50-day moving average. A pullback toward that area (or slightly below) looks likely given current price action.
- Playbook: if you remain bullish, consider staggered buy orders near the 50-day region (10,318) but respect that staying below ~10,480 leaves downside bias intact.
DAX
- Price action: a key reversal/downside outside day has shown up.
- Resistance: failed at the 200-day moving average around 24,175.
- Support: next notable floor sits near the November support zone around 22,900.
- Signal: a sustained close back above the 200-day line would change the outlook, but that has not happened yet.
Dow
- Momentum: RSI has dipped below neutral 50 and the 50-day started to roll over.
- Key moving average: 200-day near 46,300 — a realistic retest given the pullback.
- Upside threshold: an end-of-day close above 48,700 would be the minimum sign that the worst is behind us.
Cryptocurrencies
Cryptos are attempting rallies but remain vulnerable to their moving averages and trend channels.
Bitcoin
- Attempted rally failed at the 50-day moving average, roughly 75,000.
- There is still life while price holds above the top of the broken falling trend channel near 68,000.
- Failing that leaves the floor of the short-term channel as a target around 61,500.
- RSI: just above neutral at 51, which is a small positive but not decisive.
Ethereum
- Price is testing the upper edge of a falling trend channel near the 2,070 zone.
- While above that channel, a move toward the 50-day moving average around 2,322 is possible.
- Close back below the channel opens the risk of a retest of the range low near 1,780.
Commodities: gold and crude
Gold
- Despite heightened geopolitical risk, gold has not yet decisively cleared its January peak area.
- Price sits inside a rising trend channel that began late 2024. The top of the channel is near ~5,300, while the immediate support (50-day) is near ~4,870.
- Upside scenario: an end-of-day close through ~5,310 would open a run toward the upper channel (~5,870).
- Practical note: consider a limit buy close to the 50-day if intraday weakness presents an opportunity around the support zone.
Crude oil
- Price has pushed through the previous summer peak and cleared the ~77 zone, then reached the ~84 level.
- Near-term target: the upper 80s and beyond — the old April 2024 levels are within reach if strength continues.
- Risk: a drop back below ~77 would suggest a massive bull trap and would invalidate the current breakout thesis.
- Observation: given the severity of the Middle East situation, one could have expected crude nearer $100; that divergence is notable.
Selected small-cap and bulletin-board opportunities
Here are specific setups with technical levels and short-term targets. Timeframes mentioned are typically end of next month unless otherwise noted. These ideas require close risk management — many names are volatile and sensitive to news and corporate actions.
- EnergyPathways
- Bounced above the 50-day line 5.63p.
- Near-term target: 7.75p; if there is a positive government decision, a retest of September 2025 resistance near 10p is possible.
- Galantas
- Has broken recent resistance around 34p and exploded higher.
- Next target: old 2018 resistance around 72p, provided the price stays above the 50 level on end-of-day closes.
- Arena
- Longer-term target mentioned near 9.4p, but current runway looks more like a H1 target. Shorter-term aim 5p.
- Helium One
- Bounced above a rising 50-day moving average — a continuation signal.
- Initial target 1p, with best-case near 1.22p by end of next month.
- Watch for potential fundraises which could dilute moves higher.
- PetroTal
- Cleared recent resistance at 25p.
- Gap fill target up to 36p over the coming month.
- Quantum Blockchain
- Technical hint of a turnaround: bullish divergence — lower lows in price with higher lows in RSI.
- Holding above broken resistance (0.45p) is constructive.
- Synergia
- Gapped up off lows and moved back above the 50-day (0.09).
- Short-term targets: January resistance at 0.12, and potentially 0.16 on materially positive news.
- SkinBio (SBTX)
- Closed above the gap floor and is showing bullish divergence.
- First target hit near 12.25p; next target 19p while price remains above 12p.
- Touchstone
- Broken out of a falling trend channel from last year; now above 10.75p.
- Target 16p, while the gap floor near 9.75p remains a stop benchmark.
- Thungela
- Not usually covered due to market cap, but the top of the current channel sits near 900p.
- Holding above the flag floor (590p) keeps the constructive case alive.
- Tullow
- Earlier target (13.75p) hit recently.
- Next target 17p while the old February resistance (11–12p) holds as support.
Trading checklist: what to watch and how to manage risk
- End-of-day closes matter. Look for daily closes above resistance or below support to confirm moves.
- Use the 50-day and 200-day moving averages as tactical buy/sell zones. A break and hold below the 50-day often signals more downside; a reclaim of the 200-day is meaningful.
- Place limit orders near known support zones if you want to scale into positions — for example, the 50-day on gold or FTSE 50-day on the index itself.
- Beware of structural risks like fundraises and corporate news on small caps; these can quickly invalidate technical setups.
- Watch for bull traps — especially in commodities like crude; a return below recent breakout levels (~77 for crude) would be a red flag.
Final thought
The market picture is cautious right now. Several indices are testing key technical lines and cryptos remain range-bound relative to moving averages. That creates a mixed landscape: selective opportunity in commodities and aggressively profiled small caps, but only if clear support levels hold. Keep trade sizes reasonable, use clear stop references, and treat end-of-day confirmation as your friend.
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.
