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, Bradda, 80 Mile, GenIP, Kodal, Neo Energy, Oracle Power, Panther, Seed, Vaultz.
Markets are sitting in record territory, but the mood is constructive rather than complacent. Several indices look set to stretch higher in the coming days and weeks, while crypto and gold offer technical set-ups that favour upside if key moving averages and RSI signals hold. On the small-cap front, a host of exploration and AIM-listed names have caught my eye with clear chart targets and clean breakouts.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major Indices
FTSE 100
The FTSE is approaching the top of its channel. Short-term target is 10,180, with a best-case extension up toward 10,500 by the end of next month — possibly sooner if momentum continues. The immediate downside buffer sits around recent support near 10,100. Expect the occasional pullback; a “rugpull” is overdue, but the trend remains north while price stays above support.
DAX
The DAX has been less buoyant than the FTSE but is pushing into record territory. The near-term channel top from April/May is around 25,800, with a reachable target of 27,000 by the end of next month in a best-case scenario. Keep an eye on the old October resistance near 24,700 — that level should act as support on any retracement.
Dow
The Dow is forming a bull flag above old resistance at 48,800. A realistic near-term aim is 50,000, while a projecting resistance line could carry price to roughly 51,800–52,000 by the end of next month. A worst-case pullback would test the 50-day moving average near 47,800.
Crypto: Bitcoin and Ethereum technicals
Bitcoin
Bitcoin is through post-November resistance at about 95,000. The 200-day moving average at roughly 106,000 is the logical upside target and could be seen by the end of next month or sooner. The nearer-term risk is a pullback to the 50-day moving average near 90,000, but the RSI 50 rebound has acted as a reliable leading indicator — the bias looks upward while that structure holds.
Ethereum
Ethereum’s sideways lift above a rising 50-day has translated into a clean breakout above ~3,300. The 200-day moving average and an October resistance projection near 3,643 are the next objective, potentially as soon as the end of this month. The double RSI 50 bounce remains a favourable sign technically.
Gold and commodities
Gold is sitting near the old resistance band around 4,550. The upper channel from November suggests a move to roughly 4,800 by the end of next month in the best case. If there’s a downside correction, the 50-day moving average near 4,274 is a sensible limit-order level, while the channel floor around 4,430 would be the deeper support. Commodities often experience periodic “rugpulls” when the action becomes too easy, so manage risk accordingly.
Small-cap watchlist: breakouts, targets and risk lines
Several AIM and junior exploration stocks are showing clear technical setups. Below are the names I’m tracking, with the immediate targets and the support levels that will invalidate the bullish case.
- Ajax Resources — Already above the 8.5–9p area (top of the rising channel from June). Near-term target 11p, with an extended projection up to 13–14p by the end of next month if momentum continues.
- Bradda Head — Rebounded from a bear trap. Above 0.9p the next target is 1.5p, with a higher objective at around 2.25p by the end of next month, provided it stays above the 50- and 200-day lines near 1.1p.
- 80 Mile — Nearing the initial target of 1p. If it remains above 0.8p, the upper parallel of the rising channel may take it to 1.5p by the end of next month.
- GenIP — A strong gap higher produced a bear trap island reversal. Initial target is the top of the gap at 18.5p (possible by month-end). Best case extends to the channel top at 29p by the end of next month. For conservative confirmation, wait for an end-of-day close above the 50-day (14.6p).
- Kodal — Gapped through recent resistance around 0.38p. First target near 0.46p, then a July-resistance projection up to 0.56p by the end of next month while above the old peak.
- Neo Energy — After a pullback that looked like a bull trap, price bounced and is sitting just above the 200-day moving average. Both 50- and 200-day lines are rising. An end-of-day close above recent resistance (0.8p) could open a retest of the 1p level by month-end.
- Oracle Power — Broke resistance at 0.49p. Expect the top of the range near 0.8p by the end of next month, supported by an RSI rebound and likely further company news.
- Panther Metals — Rejigged corporate structure and improving sector tone. First target 86p, then up to £1.05 by the end of next month, provided we don’t lose January resistance around 72–73p.
- Seed Innovations — Approaching the target of 5p by month-end while remaining above broken resistance at 3.75p.
- Vault Ventures (Vaultz) — Delivered the first target near 1.2p, and temporarily hit the 50- and 200-day area 1.65p. An end-of-day close above 1.65p would open a hefty target at 2.7p by the end of next month. Support to watch is 1.35p.
Risk management and confirmations
Technical set-ups are working well right now, but keep risk front of mind:
- Use end-of-day closes above key resistance or moving averages as confirmation before adding size.
- Treat the 50-day and 200-day moving averages as meaningful support. A breakdown below these lines often signals a deeper correction.
- Place limit orders at sensible levels on pullbacks — for gold that could be the 50-day near 4,274, for stocks the 50-day line noted above each name.
- Expect periodic rugpulls in commodities and crypto when price gets too easy. Keep stops tight if you cannot stomach sudden drops.
The technical picture is constructive across many markets, but confirmation matters. Targets laid out here are realistic provided the support levels hold. More updates and fresh set-ups will follow as price action develops.
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.
