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, Ajax, Anglesey, Aurrigo, Block Energy, Empyrean, Eco, Mkango, Rockfire, System1, Tern, Thruvision, Unicorn, ValiRx.
Markets remain broadly constructive with major indices holding above rising 50 day moving averages. That simple observation frames expectations for a continuation of this late year strength, with a few clear levels to watch for confirmation or a change of bias.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices to watch
FTSE 100
Still in a bullish frame of mind while price sits above the rising 50 day line. Key technical notes:
- 50 day moving average around 9,606.
- Channel floor roughly 9,500. Staying above this keeps the uptrend intact.
- Near-term target approximately 10,000, possibly by the end of next month.
- Resistance to clear for added conviction: end of day close above 9,750.
- Momentum RSI sits just above neutral at 51, so the glass is just about half full rather than half empty.
DAX
DAX is edging higher, supported by rising 50 and 200 day averages and healthier RSI readings.
- RSI around 57, a comfortable position.
- Resistance formed from October near 24,200. An end of day close above that opens the path to 26,000 plus by the end of next month.
- Key support to hold: 50 day line near 23,500.
Dow
The Dow is trading near fresh highs and remains supported while above the 50 day average.
- Recently cleared the late peak at about 47,800.
- Short-term target about 49,000 by the end of this month if the trend holds.
- Key trailing support is the 50 day line around 46,900 on an end of day close basis.
Cryptocurrencies
Bitcoin
Bitcoin is attempting to reclaim the October resistance line near 91,000. The technical checklist to watch:
- Need an end of day close above that October resistance to confirm the breakout.
- Initial upside target is the 50 day moving average, just under 99,000.
- Momentum would be more convincing if RSI can push back above neutral 50, a level it has not breached since the end of October.
Ethereum
Ethereum is finding support around the 3,000 mark with a recent low near 2,932 and is testing the October resistance line.
- Initial target is the 50 day moving average around 3,354 while price stays above roughly 2,930 on an end of day close basis.
- Momentum has improved with an RSI rebound above neutral 50.
- Downside if the uptrend fails: the April uptrend line sits near 2,750 and would be the worst case scenario for now.
Gold
Gold is holding above the broken October resistance and showing signs of consolidation from recent peaks. Key levels to monitor:
- Currently holding above the October break area near 41.50.
- Next resistance to clear around 42.70, then the one year resistance projection near 46.00 by the end of next month at the current pace.
- If there is a pullback, expect support near or just below the 50 day line.
- Consolidation above the 50 day moving average is a show of strength after the recent run.
Stock watchlist and setups
Selective small cap opportunities are showing constructive patterns. Each idea below includes the condition that price remains above the stated support on an end of day close basis.
Ajax
A decent update and an exceeded first target. Notes:
- Exceeded first target near 7.25 pence.
- Expect an acceleration to the upside with today’s gap. Short term target as high as 12 to 13 pence by the end of next month.
- Key level to protect: stay above the 7 pence handle.
Anglesey Mining
Hit target near 1.05 pence and slightly exceeded it before retreating.
- An end of day close above 1.05 pence keeps the bullish case alive, with a retest target near 1.5 pence, the old September 2024 peak.
- Support to hold: the 0.8 area.
Aurrigo International
Sideways shuffle above both rising 50 and 200 day lines. A potential golden cross is forming if the current trend continues.
- An end of day close above the top of the gap at 73 pence would confirm further upside.
- Target: the top of the range at 100 pence plus by the end of next month.
- Watch for any break below the 200 day line near 62 pence.
Block Energy
Gapped down then gapped up. The key here is holding the 50 day line.
- Stay above the 50 day line near 0.77 pence to aim for 1.1 to 1.2 pence by the end of next month.
- Technical bullish divergence is present with a lower low in price but a higher RSI trough.
Empyrean Energy
Large market cap name forming a broadening triangle base and bounced off the floor.
- Need an end of day close above recent resistance around 0.038 to keep momentum.
- Best case target on a sustained breakout is the 200 day moving average near 0.07.
- Expect some seller presence in strength, but structural charting is positive if resistance is overcome.
Eco Atlantic
Charting continues to work with a falling trend channel and a recent unfilled gap to the upside.
- End of day close above the top of the channel near 11.8 pence opens the path to a best case target of 15 pence, possibly by the end of this month.
Mkango
Looks like a small bull flag around the rising 50 day moving average.
- 50 day around 51 pence. Above that the next target is the recent high near 70 pence.
- RSI has rebounded above 50, increasing the odds of a swift move higher.
- Only a drop back below the channel floor around 45 pence would delay the upside scenario materially.
Rockfire
After a hiccup the chart produced a gap close by signal and cleared the 50 day today.
- Best case target around 0.26 pence by the end of this month while holding above the gap floor at 0.17 on an end of day close basis.
- Bullish divergence supports the case.
System1
Sharp bullish divergence in play. Watch for an end of day close above resistance at £2.25.
- Once through £2.25, the next gap floor near £2.75 is in view by the end of next month.
- Keep price above the top of the gap to maintain momentum.
Tern
Another turnaround candidate after a gap close by signal and a push through the 50 day line.
- 50 day recently cleared around 0.46. Best case target is 0.88, fundraises permitting.
- Bullish divergence adds weight to the recovery thesis, but funding activity will remain a key risk.
Thruvision
An unfilled gap to the upside remains and the 200 day moving average is the longer term target if momentum continues.
- If price closes above today’s high near 1.07 pence, the 200 day line near 1.40 pence becomes the focus.
- Keep above the top of the gap around 0.82 on an end of day close to sustain the recovery.
Unicorn
Forming a bull flag following a bear trap gap reversal. The setup is punchy.
- Clearance above recent resistance at 5.5 pence targets the top of the range near 8.75 pence by the end of this month.
- 50 and 200 day lines are rising and bullish divergence helped kick off the rally.
ValiRx
Trying to recover below the 50 day. An RSI 50 rebound is encouraging.
- End of day close above the 50 day line at 0.38 pence targets the 50 day moving average near 0.52 and would also close the gap.
How to use these levels
Keep trades simple and level based. For indices and crypto, confirm breakouts with end of day closes. For small caps, treat the named support levels as the line in the sand. Entry on a clean breakout, stop invalidated on a close back below the stated support.
“You’re cautious, you wait for an end of day close above 9,750, which is recent resistance.”
That captures the practical approach. Patience for confirmation, respect for the moving averages, and an eye on momentum will often separate false moves from genuine trend continuation.
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.
