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, Astrid, Ajax, Corero, 80 Mile, First Tin, IQE, Nativo, RentGuarantor, Reabold, Smarter Web, Westmount.
Major indices are showing more convincing upside than many small caps and cryptos. Rising trend channels, repeated RSI rebounds above neutral 50 and holds above the 50‑day moving average are the common bullish signals. That said, keep an eye on obvious support lines for the inevitable pullbacks and the occasional rug pull designed to shake weak hands.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Indices: FTSE 100, DAX and Dow
FTSE 100
- Near the top of a rising trend channel at 10,180. A close above that level could push the market toward 10,500 by the end of next month.
- Immediate support sits around 10,000. Beware a shallow rug pull down to around 9,950 that could stop out longs.
DAX
- Clean breakout from the 24,700 range. Minimum near‑term target is 25,800, achievable by the end of this month.
- We are trading above the old October resistance at 24,700, which now acts as support.
Dow Jones
- At the top of a rising channel from February near 49,500.
- Expect a run toward 50,500 by month end. Best case scenario, assuming the higher channel holds, is up to 51,800 over the next month.
- RSI has bounced above neutral 50 — a helpful sign for further upside legs.
Cryptocurrencies
Bitcoin
- Trading above a rising 50‑day moving average at about 90,400, which is a bullish leading indicator while it holds.
- Selling pressure exists in the 92,000–93,000 zone. Short‑term top of the range near 95,000; best case target around 106,000 by the end of next month.
- Break of the 50‑day down to around 86,000 would risk revisiting October 2024 support.
Ethereum
- Holding well above a rising 50‑day line at roughly 3,042.
- Near‑term upside aims for the 200‑day line near 3,632. RSI sits slightly above neutral at about 52.
- Risk: a test of the April support line close to 2,900. Consider a limit order around that level if seeking a lower‑risk entry.
Gold
- Gold has gapped higher and remains in a rising trend channel. Near‑term target is around 4,800, conditioned on staying above Friday’s intraday high of 4,479.
- If seeking a pullback entry, the 50‑day line near 4,227 is a reasonable place for a limit order.
Selected UK small caps
Focus here is on chart structure: breakout levels, 50‑day and 200‑day moving averages, RSI behaviour and unfilled gaps. Below are the practical levels to watch for each name.
Astrid
- Initial target of 0.12 reached. Next target 0.17 by month end; best case 0.21p and a move to the 200‑day moving average by the end of next month.
- Key condition: stay above 0.12.
Ajax
- Rising trend channel. Conservative target about 8.5p, practical target 9p by month end.
- Best case around 11p into next month if the higher parallel holds. Support near 6p.
Corero Network
- Good update pushed the shares up close to the top of the channel at roughly 12.75p. An end‑of‑day close above that opens a fresh leg toward an upper parallel target near 18p (possible by end of February).
- 200‑day moving average sits near 12.1p; staying above it is important.
80 Mile (Requested stock)
- Rising channel with an unfilled gap off support — a bullish start. Target up to 1p by the end of next month while holding above the 50‑day at about 0.57p.
First Tin
- Already broken out and has met the first target. Next realistic target is around 15.50p by month end.
- Support and trend line sit near 11p. Multiple RSI rebounds above 50 underline strength.
IQE
- Upgraded outlook after an RNS. Now targeting up to 14p, possibly by the end of the month, trading above the 200‑day line near 8.2p.
- Pattern suggests a bear trap island reversal: gapped down in September and gapped up now.
Nativo Resources
- Gapped through the 200‑day average of about 0.48p. A triangle breakout could take it toward 0.8p by the end of next month.
- Maintain above the top of the latest gap at roughly 0.45p.
Rentguarantor
- Broken out of a falling channel and above the 200‑day at about 25.75p. Golden cross in place and recent resistance cleared at 32p.
- Target the top of an August triangle nearer 45p. Keep an eye on 32p as the key support level.
Reabold
- Strong rebound: initial target 0.06, next 0.095, and a higher objective near 0.17 was nearly reached.
- Condition: stay above the overnight gap near 0.1175 on an end‑of‑day close. Both the 5‑ and 200‑day lines are rising and the rally began with bullish divergence.
Smarter Web
- Multiple false starts in the past, but recent technicals look better: RSI 50 rebound and a break through the 50‑day line for the first time since July.
- RSI and momentum suggest the shares can exceed 55p while holding above the 50‑day, currently near 43p.
Westmount Energy
- Targets progressed from 5.5p to 8p, and the next objective is around 11p possibly by month end.
- Important to remain on the right side of 7p on an end‑of‑day close. Multiple RSI 50+ rebounds support the move.
Practical rules to trade from here
- Watch the 50‑day and 200‑day moving averages. Holds above the 50‑day often precede sustainable rallies; the 200‑day is a longer term structural guide.
- Use RSI 50 rebounds as confirmation. Several of the stronger setups rely on repeated RSI rebounds above neutral 50.
- Respect unfilled gaps. An unfilled gap off support is often bullish. Conversely, a filled gap or a rug pull can be a trap.
- Set clear stop levels. Keep a stop under the most recent structural support to avoid being shaken out by routine volatility.
Bottom line
Big indices look constructive and may lead broader markets higher if trend channels and RSI behaviour hold. Cryptos are mixed but still above key 50‑day lines for now. Gold shows strength with a clear upside path. Among small caps, several names are in meaningful breakouts — but discipline around support, moving averages and gap behaviour remains essential.
More updates tomorrow as charts evolve and new levels confirm or fail.
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.
