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, Directa Plus, Galantas, Kromek, Nuformix, Nativo, MobilityOne, Pulsar, Plexus, Touchstone, ValiRx, Westmount, Wishbone.
Markets are back in motion and the start of the year is already throwing up clear directional clues. Here’s a concise, practical read on the big picture for major indices, cryptos and gold, followed by the small-cap movers that caught attention today.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The FTSE is finding life above the 10,000 level and looks set to test the top of the rising February trend channel at around 10,100 by the end of this month. A best-case extension could see the index nearer 10,500 by the end of next month.
Key downside reference points to watch: the floor of the October rising channel near 9,820, and the 50-day moving average at roughly 9,730. While we remain above the newly-established support at about 9,920, momentum favours a move back into 10,000-plus territory.
DAX
The DAX is flirting with its previous peak around 24,771. A decisive end-of-day close above that level opens the path to the upper channel from April and a target near 25,700 by the end of the month.
The recent rebound through RSI 50 and the fact that both the 50- and 200-day moving averages are rising give this market a constructive tilt.
Dow Jones
US large caps finished the week strongly with an outside day pattern and another RSI 50-plus rebound—the fourth in about a month. That clustering of RSI signals is a healthy backdrop for further gains.
Neutral-to-bullish scenario: a conservative intermediate target of around 49,100 by month-end, with a stretch target of 50,000 by the end of next month, so long as the Dow holds above the 50-day moving average at about 47,576.
Cryptocurrencies
Bitcoin
Bitcoin has cleared a broken October resistance line near 88,000 and is trading above the 50-day moving average at roughly 89,000. With RSI comfortably back above neutral 50, the next technical objective is the 200-day moving average near 106,000, possibly as soon as the end of the month.
Downside risk for now looks like a test of the 50-day line rather than a full reversal.
Ethereum
Ethereum is mirroring Bitcoin’s behaviour. Above the 50-day moving average near 3,008, the market is likely to target the 200-day moving average at about 3,605, or resistance in the approximate 3,700 area.
Gold
Gold has mapped out a neat price channel: support sits around 4,250 and the top of the channel from November sits near 4,750. A double-ish RSI 50 rebound is reinforcing the case for a run toward the channel top, potentially by the end of next month.
Small-cap movers to watch
Several AIM and small-cap names are showing renewed momentum. These are not trading recommendations but a technical snapshot of what the charts are suggesting right now.
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Directa Plus
Chart action has picked up. The immediate upside target sits just under 15p, with a longer-term peak (previous June high) near 20p. Upside remains valid while the shares hold an end-of-day close above recent broken resistance at about 12p.
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Galantas Gold
Forming a bull flag with a potential breakout level at around 7p. Initial target noted at 8.5p, and a more ambitious upper channel projection as high as 20p if momentum accelerates. Both the 50- and 200-day averages are rising.
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Kromek Group
After years of congestion between roughly 5p and 9p, Kromek looks to be delivering a breakout. A minimum upside target of around 12.6p is suggested by current patterning, valid while the shares stay above old resistance near 9p.
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Nuformix
Plenty of social chatter and the chart is showing follow-through. Holding above the 50-day moving average, the near-term target is roughly 0.55, with the possibility of further upside toward the 0.60 area by the end of next month if the trend persists.
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Nativo Resources
The shares have broken the 200-day moving average at about 0.52. Above that level, look for an intermediate target near 0.75, potentially rising toward 0.80 while the stock remains above recent support around 46p.
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MobilityOne
A fresh corporate announcement has produced stronger-than-expected follow-through. On the chart the top of the broadening triangle from 2023 sits near 14p. Keep an eye on Friday’s resistance at roughly 4.6p as the short-term reference point.
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Pulsar
Operational headlines in Michigan have coincided with technical strength. There is a rising trend channel in place and an immediate top-of-channel target near 62p. Support and recent gaps in the 43p area are worth watching.
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Plexus
Pushed through a recent resistance break at about 6.3p following a 50-day moving average test. The top of a broadening triangle projects substantially higher, with the bullish case intact while the 50-day and RSI remain supportive.
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Touchstone
Delivered a December resistance break at roughly 8p. The next meaningful technical objective is the 200-day moving average near 15p, which could come into view by the end of the next month if momentum continues.
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ValiRx
Multiple bounces off support around 0.32p and repeated RSI 50 tests hint that a turnaround is underway. An initial target sits above current levels with the chart also attempting to fill a gap from October. Strength is conditional on holding the 50-day line.
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Westmount Energy
The shares have hit an earlier target line around 5.40p. On an end-of-day close above that mark, the chart suggests the potential for further upside; the technical set-up remains constructive while the stock stays comfortably above prior support near 4p.
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Wishbone
Continuing a steady climb, Wishbone has reached the top of a recent rising trend channel near 112p. The next wider channel projects a move toward the approximately 145p zone by the end of the month if the trend holds.
How to use this snapshot
Treat these levels as a map rather than a schedule. Look for confirmation: end-of-day closes above resistance, holds of key moving averages and repeated RSI behaviour around the neutral 50 line are the kinds of signals that have been useful recently.
If momentum is genuine, indices and cryptos can accelerate quickly. If they fail to hold key moving averages, expect at least a retest of those moving averages rather than an immediate crash. Small-cap charts can turn quickly; keep stops tight and size positions appropriately.
More updates will follow as these patterns play out. For now, watch the key levels and let price confirm the story before committing fresh capital.
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.
