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, Ariana Resources, Aura Energy, Alba Mineral, Alien Metals, Clontarf Energy, Goldstone Resources, KEFI Gold and Copper, MicroSalt, Nativo Resources, Strategic Minerals, Sovereign Metals & Tungsten West
The big-picture theme right now is selective bullishness: indices and gold are showing constructive action while cryptocurrencies and some mid‑/small caps need confirmation. Below are the price levels, technical cues and short-term targets I’m watching.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The index has stabilised at higher levels but remains beneath the top of the long rising channel that began in February last year. The key level to clear is an end‑of‑day close above 10,220. That would open the road toward 10,500, ideally in the coming weeks (best case by the end of next month, though that looks ambitious).
Support is holding around the channel floor near 10,000, with recent bids coming in above 10,100 — a positive sign. Momentum is constructive too, with the RSI bouncing above the 60 level.
DAX
DAX has been a bit rockier, but the formation to note is a bear trap / island reversal. Two downside gaps were reclaimed and the market is now holding the upside gap around 24,700 — the old October resistance. On that basis a move to the top of the channel near 25,600 is a reasonable target over the next few weeks.
For traders looking to add on weakness, the 50‑day moving average around 24,280 is a logical place for limit buys. Momentum is mildly positive with RSI around 53. If you prefer confirmation, wait for an end‑of‑day close through 25,000.
Cryptocurrencies
Bitcoin
Bitcoin has bounced off the uptrend line that began in October 2024 and is trading inside an upward channel. The next structural resistance sits around the previous October highs at roughly £92,000–94,000. A close above the 50‑day line at about 90,000 would give more conviction for a push toward that resistance in the first half of February.
Ethereum
Ethereum looks more fragile. It has broken below the April support line near 2,980 and the 50‑day line sits near 3,068. While RSI has bounced above neutral 50, the risk remains to the downside — a revisit of November support around 2,622 is possible over the next couple of weeks if price cannot reclaim the 50‑day.
Gold
Gold has exceeded expectations and is trading well above earlier targets. Previous short‑term targets near 4,800–4,880 have been cleared. The immediate technical priority is holding support at the latest gap floor (around 4,950).
If that level holds, the path is open for further progress to 5,100–5,200 and beyond over the coming weeks.
Small – Caps
Here are the chart setups I’m watching in the junior space. Each note flags the technical trigger, a short‑term target and the key support level to respect.
- Ariana Resources: Recent resistance at 1.66p has been broken. With both the 50‑ and 200‑day lines rising, a move toward 2.3p by the end of next month is within scope. Keep the breakout level as the reference for stops.
- Aura Energy: Built on an unfilled gap to the upside and looking toward the top of the rising channel at 15p. While price stays above the gap around 10.5p, the momentum picture (double RSI 50 rebound) looks supportive. A quicker move by the end of this month is possible.
- Alba Minerals: Needs a clean end‑of‑day close above 0.026p. If that happens, a target of 0.036p by the end of next month is plausible. 50 and 200 day lines are rising and parallel — constructive structure.
- Alien Metals: Started to recover after breaking recent resistance around 0.145p. With both moving averages rising, the next useful reference is late‑August resistance near 0.29p, which could be reached by the end of next month. Standing the right side of 0.19p is preferable.
- Clontarf Energy: Serial underperformer but potentially stabilising around the 200‑day line near 0.028p. A move toward the top of the triangle from March last year, near 0.044p by end of March, is an aggressive but possible scenario if momentum flips.
- Goldstone Resources: Targets have been flagged progressively: initial 0.75p, second target a penny and an ambitious 1.6p. The constructive view holds while the share price remains above 1p with upside targets into the next month.
- KEFI Gold and Copper: Broken the resistance and the 50‑day line sits near 1.39p. The top of the falling channel is around 1.75p — a reasonable target by the end of next month so long as price stays above the 50‑day.
- MicroSalt: Showing a clean break above a rising 200‑day line at roughly 59p. The nearer target is the top of the 14‑trend channel around 70p, with a more ambitious triangle top nearer 95p if momentum persists.
- Nativo Resources: Long hoped to reach a penny. The current triangle projects toward about 0.8p, with the breakout reference at 0.58p. The 200‑day line looks flat and is ready to roll higher if this breakout holds.
- Strategic Minerals: Trading strongly after a well received fundraise. If price stays above recent broken resistance at 1.65p, the top of the channel near 2.4p is an attainable next target.
- Sovereign Metals: Gapped higher and broke the March downtrend around 36p with a V‑shaped rebound. Holding most of the gap makes a 55p target by the end of next month achievable.
- Tungsten West: Already hit the earlier target and continued higher. An extra target sits at 31p provided the shares remain above the previous target of 20p.
Practical trade rules I’m using right now
- Prefer end‑of‑day confirmation for breakouts. Intraday moves are informative but EOD closes cut through noise.
- Use moving averages as triggers — the 50‑day for tactical entries, 200‑day for structural trend bias.
- Respect gaps and recent broken resistance as support. Gaps often act as a floor for rallies if they are held.
- Manage risk — if price falls back below the breakout or the key moving average, reassess the position quickly.
Summary
Indices and gold look constructive and a number of juniors have clear chart-based targets over the next month. Bitcoin and Ethereum need stronger confirmations — the 50‑day lines are useful gatekeepers. For small caps, focus on clean breakouts, rising moving averages and the price levels noted above. Keep position sizing sensible and use price confirmation rather than hope.
Note: These are chart observations rather than investment recommendations. Do your own research and take account of your risk tolerance before acting.
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.
