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, Atlantic Lithium, Cora, Crism, Connecting Excellence, Dillstone, Delta Gold, Deltic, 88 Energy, Greatland, Inspiration Healthcase, Kistos, Ormonde, Pri0r1ty, Star Energy, Switch Metals, United Oil & Gas.
Price action is doing most of the talking this week. Several major indices are carving clear channels, Bitcoin and Ethereum sit in delicate consolidations, gold is tracking a rising channel and a clutch of small caps are setting up tradeable moves. Below are the levels, practical targets and simple plans to follow—no fluff, just the lines that matter.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The FTSE has cleared the key resistance near 10,570, which keeps an upside push to 11,000 on the cards, ideally by the end of next month. If the market pulls back, a retest of that broken line would be healthy. The worst-case technical level to watch is the uptrend from November, currently just under 10,400.
DAX
The DAX is bumping into recent resistance around 25,200. A sustained break above that opens a move to about 25,800. If there’s a pullback, look for support near the 50-day moving average—around the 24,000–24,700 area—before dismissing the bullish set-up.
Dow
The Dow remains snug inside a rising trend channel that began in late November. The floor of that channel coincides with the 50-day moving average near 48,900. While price stays above the 49,000 area, the next practical target is the top of the channel near 51,000, ideally within the next month or so.
Cryptocurrencies
Bitcoin
Price action looks like a bear-flag continuation in waiting, although we have not yet seen a decisive breakdown. The important short-term support to hold is around 65,000—no end-of-day close beneath that yet. A confirmed daily close below would open a slide toward the lower channel floor near 55,000, with a possible deeper retest of summer 2024 support around 52,000.
Upside resistance sits near the post-bounce ceiling at roughly 72,000.
Ethereum
Ethereum is trapped in a recent range of roughly 1,900–2,150. The RSI is in the low 30s, so there remains a risk of a drop to the channel floor near 1,700. A clear close above 2,150 would re-open a run toward 2,400, but that currently looks a longer shot.
Gold
Gold is tracking a rising trend channel that started back in late November. The top of the channel heads for the 5,180–5,185 area, while the 50-day moving average sits near 4,690. Historically this year the 50-day has acted as a reliable bounce zone—watch for limit-buy opportunities there. As long as price holds above the 50-day, an initial target of 5,200 is reasonable.
Small-cap watchlist
Concentrating on clear technical setups: moving averages, RSI behaviour and broken resistance acting as new support. Timeframes are short to medium—mostly a few weeks to a couple of months.
- Atlantic Lithium: Blasted through the first target at 13p and the second at 17p. While above 17p, next upside resistance projection is near 25.75p, a target for roughly the end of next month. RSI has been above 50 since late December, highlighting strength.
- Cora Gold: Bounced from the rising 50-day moving average near 8p. Expect a gap fill toward about 10.75p in the next week or two, with the top of the channel around 12p as a 4–6 week objective. Keep 8p as a key support.
- CRISM’ Therapeutics: Recently broke resistance at 10p and cleared November resistance near 14p. The recent range top sits between 23–26p, a plausible target by the end of next month. Watch the 200-day line for further confirmation as it turns upward.
-
Connecting Excellence: After a sluggish start, price has firmed up. The 1.2p area was cleared and bullish divergence in RSI suggests momentum improvement. A return to around 1.8–2.0p by the end of next month is an achievable aim.
- Delta Gold: A long-running pick with momentum similar to peer Guardian Metals. The next target was 30p; above that the plan stretches to 43p. Best-case channel target by the end of next month sits near 53p, provided price stays above recent broken resistance at 36p.
- Dillistone Group: Small and punchy. Initial target was the broadening-triangle top at 13p. Above that the upper parallel of 2024 resistance projects toward 19p over the next couple of months. Recent support around 10p is the reference stop area.
- Deltic Energy: Breaking above the 50-day moving average at about 3.2p and clearing RSI 50. Immediate upside target is roughly 5.4p by the end of next month. Conservative traders will wait for an end-of-day close above the January peak near 3.77p.
- 88 Energy: After past volatility, the chart shows a rising trend channel. Short-term top of that channel sits near 1.75p. Keep the penny level as the technical reference—while on the right side of it, upside is plausible.
- Greatland Resources: Consolidation between about £6–£7 inside a rising trend. The channel’s top points toward roughly £8.20 as a two-month target while price remains above the 50-day moving average. RSI has been decisively above 50 since late November, which is constructive.
- Inspiration Healthcare: Clean break above the 200-day moving average and multiple RSI 50-plus rebounds. With both the 50- and 200-day lines rising, a golden cross is forming. Initial upside target: 27p while staying above the 200-day near 20p by the end of next month.
- Kistos: Bounced off the previous target near £2.30. The upper parallel of the rising 2024 channel projects toward about £3.15 by late April, assuming support holds around the low £2.20s.
- Ormonde Mining: Consolidating around the previous target at 0.35p (top of a rising channel base). Staying above 0.30p raises the odds of a move to about 0.50p, the pre‑2023 support level.
- PR1: Gaped through the 50-day moving average with the 50-day itself starting to rise—this is a classic positive reversal setup near the lows. Initial take-profit zone is the 200-day around 2.95p, with larger resistance nearer 5.5p. Suggested stop near 2.15p.
- Star Energy: Hit an initial target of 10p and a second at just under 13p. The next material resistance is around 20p, which could be reached by the end of next month if momentum continues.
- Switch Metals: Pushed above first target at 13p, with a short-term follow-up near 17p. A resistance projection for the end of next month sits around 22p, so stay above 13p to keep that scenario intact.
- United Oil & Gas: After years of trying, the technical picture looks better. A break of the June resistance near 0.14p is in place; next sticky zone is around 0.21p. If that clears, a run to about 0.28p by the end of next month is possible, barring funding or company-specific setbacks. Recent action shows three clear RSI 50 rebounds over the last month.
Practical rules and risk control
- Use broken resistance as new support. Many setups work while the prior resistance stays intact as a floor.
- Watch the 50-day and 200-day lines. The 50-day has repeatedly acted as a reliable bounce in several names this year. A rising 50-day near lows is an especially positive sign.
- Keep an eye on RSI behaviour. RSI 50 rebounds have been useful leading indicators across both indices and small caps.
- Set pragmatic stop levels. For the small caps listed, the transcript suggests practical stop areas—use those or your own risk tolerance.
Price action is leading; follow it. Levels matter more than stories. More updates tomorrow.
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.
