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, Ascent, Anglesey, Cab Payments, Cykel, Eco (Atlantic), EQTEC, East Star, GreenRoc, Made Tech, Narf, ValiRx.
Markets are at a negotiation point. Major indices are testing key trend lines and moving averages, cryptos are trying to recover after failed momentum attempts, and a handful of small caps are showing the kind of technical setups that can deliver sharp moves if support holds. Below is a practical, level-by-level read on what to watch and why.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
- Price is testing resistance around 9,680. The market is slightly flat at the line.
- An end of day close above that level opens a run toward 10,000 by the end of next month.
- Positive technicals: RSI has rebounded through 50 and the index is finding support just above a rising 50-day moving average, which tends to lead to further upside.
DAX
- Negotiating a trend line near 24,200 (practically the same as the 24,150 zone).
- An end of day close above that line should push the DAX toward previous highs near 24,600.
- On the downside, a close back below the 50-day line (just under 24,000) would be the first warning. A sharper pullback could test ~23,500.
- RSI sits around 58, supportive of a fresh move higher.
Dow
- Produced a key reversal to the upside, closing above the prior session high and reclaiming the 48,000 area.
- As long as price remains above the 50-day line near 47,000, a push to the top of the channel around 49,000 by month end is plausible.
Cryptocurrencies
Bitcoin
- Resistance around 91,000 remains important. There was a brief breakout but follow through has not yet arrived.
- Support: an uptrend line dating back to March or April sits near 89,000. The structural floor of the rising channel from October last year looks to be around 80,000.
- Upside target if momentum returns: the 50-day moving average near 97,700.
- Warning sign: the market has recorded two failures around the RSI 50 zone. One failure can be a sell signal; two are harder to ignore. A break beneath the 88,000 level would increase the risk of a move toward the 80,000 floor.
Ethereum
- Reached the 50-day line but could not get to the 200-day line at about 3,554.
- Key short-term level: an end of day close back above the 50-day moving average at roughly 3,317 would be needed to push toward the 200-day line.
- If that fails, a retreat back toward recent support just below 3,000 becomes likely.
- RSI has shown a low 50s failure, which is a cautionary signal until momentum improves.
Gold
- Consolidating either side of roughly 4,200, trading comfortably above the 50-day line at about 4,097.
- A break through 4,250 would open a path toward roughly 4,600 by the end of next month if the current channel remains intact.
- Key technicals: the market is above the broken October resistance and the RSI sits around 61, not overbought and still supportive.
Stocks to watch
Several small caps are showing clear technical patterns. The common theme to monitor is where price sits relative to the 50-day and 200-day moving averages and whether RSI is confirming the move.
Ajax Resources
- Recently moved back above the previous target around 7.25p. Staying above that level increases the chance of a move toward 12p to 13p.
- Support structure: bounced above rising 50-day and 200-day lines near 6p. Also registered an RSI rebound above 50 and a key reversal day today.
- Catalyst: acquisition news and a fund raise have reinforced the technical breakout.
Ascent Resources
- Quiet until recently, now bouncing off the floor of a rising trend channel.
- Watch for a close above the 50-day moving average, which sits in the mid 40s on the chart. RSI is already above neutral 50.
- A sustained trade above that 50-day area points to a retest of previous resistance near 0.60p. A drop back below 0.40p would jeopardise the bullish scenario.
Anglesey Mining
- Has benefited from a debt restructure and a bounce off the 200-day moving average.
- Near-term target is a retest of the prior November resistance around 1.05p. Best case while above the 200-day average is up to about 1.5p by the end of next month.
CAB Payments
- After a long disappointment, a breakout would likely produce outsized gains relative to how poorly it traded earlier.
- If the stock can close above the top of its rising channel and clear 70p, a run to the upper parallel near 90p becomes possible. Keep above 60p for the bullish case to remain intact.
Cycle AI
- Moving against recent lower lows, RSI has held flat, which creates a bullish divergence.
- Initial target is the upper 30s, roughly 37p to 38p, provided support around the low 20p zone holds.
Eco Atlantic
- Showing a bull flag at higher levels with support near 19p. A clean move above that structure looks for a retest of about 25p.
- Positive company news and sector moves have helped create momentum. The right side of 19p is the level to keep.
EQTEC
- Here we have bullish diversions, looking for a move up towards 0.70p – 0.80p area
East Star
- Several micro caps have met or exceeded short targets. One stock that reached its first target near 2.88p has now set a second target near 4p, with intraday support around 3.3p. Holding that intraday support keeps the next leg alive.
GreenRoc
- Has a clear channel and is heading for the top of that channel around 4.4p by the end of next month, ideally staying above the 50-day near 2.6p.
Made Tech
- Gapped up and cleared the highs of that gap around 34p. That opens a path to about 42p by month end, while staying above the late October resistance at 34p.
NARF
- NAF is consolidating above a rising 200-day line near 0.48p. The longer it stays above that moving average, the greater the chance of a push toward 0.90p in the next two to three months.
ValiRx
- Some stocks are showing multiple RSI 50 zone rebounds. Historically, a double or triple rebound through that zone often precedes a large move to the upside. Watch for a decisive end of day close above the 50-day moving average near the low 30p zone to confirm momentum.
Practical trade checklist
- Confirm an end of day close above key trend lines or moving averages before committing. Intraday noise is common around these levels.
- Watch RSI behaviour around the 50 level. A clean rebound through 50 with price above the 50-day moving average is a strong technical signal.
- Use nearby support as your risk reference. For small caps, the 50-day and 200-day lines are reliable swing management levels.
- Adjust targets if price action fails to follow through. Two failed RSI 50 tests in quick succession suggest a higher probability of deeper retracement.
Markets remain finely balanced. The next few sessions will tell us whether indices and specific stocks get the momentum they need to push toward the targets above or whether a rotation lower will test the identified floors. Trade size accordingly and keep an eye on end of day confirmations rather than intraday noise.
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.
