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, ACG, Ajax, Amigo, Ampeak, Amala, Delta Gold, Kendrick, Kodal, Neo Energy, Orosur, Tertiary, Union Jack.
Markets opened the week on the softer side, with indices drifting inside longer-term rising channels and a handful of bearish technical hints showing up on the charts.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below is a straight-talking, chart-first run through the major indices, crypto, gold and a selection of small caps currently showing interesting setups. Each entry highlights the key support and resistance levels to watch, likely targets and the conditions that would invalidate the bullish case.
Major Indices
FTSE 100
The FTSE remains inside the rising trend channel that has been in place since February last year. The nominal channel top is around 10,200, with initial support near the early January resistance at about 10,158. A close below that level opens the risk of a drop toward the 10,100 area.
Watch the RSI—recent higher highs in price have been accompanied by lower RSI readings, a classic bearish divergence that raises the chance of a pullback to the 10,000 area even if the market later resumes the uptrend. To reassert a bullish path for the month ahead, we need an end-of-day close back above 10,200, which would keep the October rising channel target at about 10,500 in play for the end of next month.
DAX
The DAX is trading above the old 24,700 resistance—ideally that becomes new support. While it holds above that level on an end-of-day basis, the next upside marker is the channel top around 25,800, a target that could be reached in two to four weeks given the DAX’s typically slower pace.
Downside risk initially sits near the December resistance turned support at roughly 24,500.
Dow Jones
The Dow is in a congestion range between roughly 48,800 and just under 49,700. A decisive break above that range would open the psychological 50,000 zone and make a move to the upper December rising channel—and a target near 51,700—plausible by the end of next month.
If the index slips, the 50-day moving average is the likely focal point, somewhere in the high 49,000 area. Expect that to act as the favoured support zone unless things deteriorate further.
Crypto
Bitcoin
Bitcoin has shown what looks like a bull trap after crossing the post-November resistance near 95,000. If price cannot reclaim that level on an end-of-day close, the immediate downside target is the 50-day moving average at about 90,300, with the October 2024 uptrend line near 86,000 as a secondary support.
A clean close above 95,000 would be the signal to target the 200-day moving average around 105,000 by the end of next month.
Ethereum
Ethereum also looks weakened after a bull-trap move past about 3,300. The 50-day moving average sits near 3,084, with a broader uptrend line from April near 2,920 as a worse-case support.
RSI remains above the neutral 50 level, so recovery is possible. An end-of-day close through 3,300 would reopen a path toward the 200-day moving average at approximately 3,661.
Gold
Gold continues to be a standout performer. It has found support above the old December resistance near 4,560 and is trading inside a rising channel from November 2024. The top of that channel sits around 4,820—a reasonable target for the end of next month if upward momentum persists.
A pullback to the floor of the channel, around 4,420, would present a clear buy-on-the-dip opportunity for longer-term bulls.
Stock Watchlist
Below are the charts currently catching the eye. Each entry lists the key technical trigger, a near-term upside target and the downside level that would invalidate the immediate bullish view.
- ACG Metals — Bull flag between about 12.5p and 13.5p. An end-of-day close above 13.5p targets roughly 15.25p (top of the rising channel). Worst case: a test of the October/November resistance near 11.8p.
- Ajax — Has hit the top of its rising channel from October. While price stays above 10p, a run to about 14p is plausible. A fall toward 8.75p would be the corrective scenario.
- Amigo Holdings — Despite a mixed fundamental story, the technicals have been constructive: a V-shaped bull flag through recent resistance at about 1p points to a target near 1.4p. Keep an eye on the RSI rebound—staying above the previous short-term support keeps the path higher intact.
- Ampeak Energy — Now trading inside a rising trend channel from August with a channel top close to 4.44p. The bullish case remains while the stock does not close back below the 50-day moving average near 3p.
- Amala Foods — Looks like a breakout through recent resistance above 0.11. A move to the top of the broadening triangle near 0.17 is possible, supported by an uptrending RSI. Staying above 0.11 keeps the outlook constructive.
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Delta Gold — Hit the target at 26p on the nose. An end-of-day close above 26p opens the way toward roughly 37p (upper parallel of the December rising channel). Important support sits around the old December peak near 23p.
- Kendrick Resources — Rebound off the floor of a rising trend channel at about 0.24p. A push to the top of the range and channel near 0.46p is feasible by the end of next month if momentum continues.
- Kodal Minerals — Continuing a strong recovery; the second target around 0.56 has been reached. The next projection resistance is around 0.73. Keep the 0.55 area as the critical short-term support.
- Neo Energy (NEO) — Rebounded and gapped higher, now trading above the rising 50- and 200-day moving averages. Upside into the penny-plus area is possible while price remains above the 50-day at about 0.75.
- Orosur Mining — A steady performer inside a rising channel, with the top of the channel pointing toward around 42p. The bullish case is valid while price holds above recent resistance near 29p.
- Tertiary Minerals — Has hit the second target and is showing upside value while above roughly 0.10. The next resistance line projection is nearer 0.17.
- Union Jack Oil — Forming a broadening triangle base and eyeing the top of the November gap near 3.75p. The bullish setup depends on holding the 50-day moving average area at about 2.75p.
How to Use These Levels
Focus on a few simple rules when trading from these setups:
- Use end-of-day closes to confirm breakouts or breakdowns. Intraday noise often misleads.
- Treat the 50-day moving average as a short-term trend filter and the 200-day as the longer-term trend reference where mentioned.
- Respect RSI divergences and confirm momentum before committing size—divergences can warn of short-term pullbacks even inside longer-term uptrends.
- Set clear stop levels beneath the identified support areas to manage risk and protect capital.
Bottom Line
Price action is telling a familiar story: indices remain inside their longer-term rising channels but are vulnerable to short-term weakness until key levels are reconquered. Crypto shows the risk of failed breakouts, while gold remains a constructive hold. On the smaller-cap front, a number of bulletin board names are offering clean technical patterns—breakout triggers, measured targets and defined invalidation levels are all in place. Keep the levels above in mind and let confirmation guide entries rather than chasing impulsive moves.
More updates will follow as these charts evolve and the market decides which way it wants to resolve the congestion.
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.
