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, Crude, 88 Energy, Galantas, Helium One, PetroTal, Prospex, Petro Matad, Star Energy, Stack BTC, Southern Energy, T42, Union Jack, Zenith Energy.
Markets are digesting recent strength and showing mixed internals. Some indices look technically stretched and vulnerable to a fresh leg lower, while crypto and a handful of commodities are behaving more calmly inside defined ranges.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The FTSE is hovering around the psychologically important 10,000 area. There’s a longer-term support line drawn from November that the index has respected so far, and the 50-day moving average sits above current price near the mid 10,300s. With the RSI around the mid-30s, the market is not yet deeply oversold, so a fresh leg lower below 10,000 remains a risk.
Trade framework: stay cautious around current levels. A close back above the 50-day would be constructive; a sustained break below 10,000 would open the door to further weakness.
DAX
Two gap-down moves last week and another gap lower to start this week have pushed the DAX into oversold territory on the RSI. There’s interest close to the November support area near the high 22,000s.
Key trigger: an end-of-day close back above Friday’s support (around the low 23,300s) would be the first sign a bounce has real legs. For aggressive traders a bottom-fishing attempt is available, but be mindful—oversold can stay oversold.
Dow
The Dow is trading around the mid-to-high 46,000s, with the 200-day moving average not far away and November support close by. Watch whether the 200-day comes into play as support on intraday moves. If it holds, a bounce becomes more plausible; if it fails, further downside to the November lows is possible.
Crypto
Bitcoin
Bitcoin is contained in a relatively tight range after recent volatility, roughly between $65,000 on the low side and the 50-day moving average close to $73,600 on the high side. RSI remains below 50, so momentum is neutral-to-bearish.
Trade framework: downside support sits around $60,000; a daily close through the 50-day would give confidence of renewed upside.
Ethereum
Ethereum is inside a short-term falling channel that has been in place since the start of last month. Resistance sits near the 2,030 area with the 50-day nearer 2,246. On the downside, February support is close to 1,750.
With RSI below 50, technical momentum is still with the sellers. A breakout of the falling channel and a daily close above the 50-day would be needed to shift bias back to bullish.
Commodities
Gold
Gold is trading inside a rising trend channel and is currently above the 50-day moving average. The 50-day sits in the high 4,800s and has been tested several times this year.
Trade idea: a pullback toward the 50-day could present a reasonably low-risk entry for a run back to the upper channel near the 5,310 area, with an extended upside target toward the mid 5,800s if momentum accelerates.
WTI crude
Crude pushed up toward $119 on the recent spike and has since pulled back. The market appears to be consolidating the move higher, with short-term intraday support sitting roughly in the $96–$100 band.
Trade framework: as long as the market stays above that intraday support range, retests of the recent highs remain possible. A failure below $96 would invite deeper retracement.
Selected small cap
These are chart-based trade observations and short-term targets based on current technical setups. Keep stop discipline and watch for end-of-day confirmations.
- 88 Energy — Corporate presentation has helped the chart. Price is close to the top of the rising channel with a near-term target around 1.75p. Important support to hold is the old May resistance near 1.3p.
- Galantas — Strong recent run; the near-term target of 72p has been reached. Next bigger objective is the old 2016 resistance through £1.00, with a support pivot around 60p.
- Helium One — RNS commentary highlighted the gas/helium linkage. The chart already hit the initial target near 0.80p; next upside target on the chart is about 1.20p by the end of the next month.
- PetroTal — Cleared the 200-day moving average and looks set for further gains. Short-term target pencilled in around 37p by the end of next month. Watch the gap area near 28p as a key downside reference.
- Prospex — The shares have gapped up and are trading above a rising 50-day moving average with an RSI bounce. Chart-based objective is around 5p within the next month or so on the breakout.
- Petro Matad — Solid setup with support from a rising 50-day. Look for a move toward 1.8p by the end of next month, with a gap-fill objective nearer 1.6p.
- Star Energy — A clean V-shaped bull-flag breakout through 14.5p. The pattern targets the old 2020/2023 resistance near 20p in the coming weeks.
- Stack BTC — Broke above the 200-day line near 9p. The chart suggests a bullish run toward 15p, provided price holds above the 50-day moving average.
- Southern Energy — Broke the first target above 4.6p. The upper parallel of a broadening triangle offers a target near 6.5p this month while both 50 and 200-day averages are rising.
- T42 — A positive RNS and a break of the 200-day moving average near 2.1p. The
- chart objective is about 3.2p as momentum tries to re-assert.
- Union Jack Oil — Recent strength has hit several short-term targets. Expect the next leg toward 5.35p and a bigger objective around 8.28p in the medium term if momentum holds and the 200-day remains supportive.
- Zenith Energy — Rising trend channel base and a breakout above 3.7p. The chart target is close to 5p this month, with company-specific news (Tunisia arbitration) likely to be a catalyst.Technical checklist for traders
Technical checklist for traders
- Moving averages: use the 50-day and 200-day to define trend and dynamic support/resistance.
- RSI: below 50 suggests momentum favors sellers; oversold conditions can persist so wait for confirmations.
- Gaps: gaps act as magnets — expect fills or meaningful support/resistance around gap zones.
- End-of-day closes: daily closes above/below key levels provide better confirmation than intraday wiggles.
- Risk management: keep stop levels logical (outside of clear structure) and size positions to allow trade management.
Bottom line
The technical picture is mixed. Some indices are flirting with key support lines and remain vulnerable until they prove otherwise, while crypto and certain commodities are contained inside clear ranges. Several small-cap charts are showing genuine breakouts and pattern completions — these offer defined targets and clear levels for risk control.
Keep watching how prices behave at the 50-day and 200-day moving averages, respect RSI signals, and use gap levels and trend channels to organise entries and stops.
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.
