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, Alba, Arrow Exploration, Anglesey Mining, Ferrexpo, GCM, Goldstone, Greatland, Kendrick, Neo Energy, Reabold, Serval, Tungsten, Zephyr.
Markets are nudging higher after a short-lived dip earlier in the week. The mood is cautiously positive: short-term momentum is improving, key moving averages are being tested and, in many cases, held, and several small-cap miners and resources are showing early breakouts.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below are concise, chart-focused notes on the major indices, crypto, gold and a selection of small-cap stocks worth watching.
Major Indices
FTSE 100
The FTSE has bounced back above 10,000, reclaiming the rising trend channel that began in October. A close above the February resistance line near 10,220 would open a run toward the short-term target of 10,500, potentially by the end of next month.
Key points:
- Support (floor of channel): 10,000
- Immediate resistance: 10,220
- Target: 10,500 if momentum continues
- Momentum read: RSI bouncing above 50, which supports further gains
DAX
The chart shows volatility with gaps, but technically this looks like a bear-trap island reversal. Price is bouncing above the rising 50-day moving average and trying to reclaim the low of the week around 24,900. A clean end-of-day close above that level would make a retest of 25,000 likely.
Dow
On the longer view, the Dow is tracking a wide channel. The next meaningful psychological mark noted is the 50,000 level. For now the structure suggests staying within the widened channel anchored to recent lows.
Cryptocurrency
Bitcoin
Bitcoin remains above the important uptrend that started in October 2024. The nominal pivot to watch is around 86,000. While price stays above that uptrend, expect a range-bound market between the mid-80s and mid-90s.
- Critical resistance: 50-day moving average near 90,200
- Upside if reclaimed: move toward ~95,000
- Downside risk: failure below the 50-day could invite a test of November support near 80,500
Ethereum
Ethereum has been oscillating around the 3,000 area for some time. The recent low was around 2,868 and recovery has been sluggish under a falling trend line.
- Near-term scenario: still vulnerable to a deeper pullback that could test the April upturn line (~3,000) and lower support near ~2,600
- 200-day moving average: remains higher (around the mid 3,600s), so longer-term trend still an important resistance
Gold
Gold continues to outperform expectations. A key November 2024 resistance high sits around 4,860. A sustained break above that level could accelerate gains toward a higher resistance target near 5,350 by the end of next month.
Holding above the broken resistance area remains the primary bullish condition.
Small-Cap Miners, Resources and Select Stocks
Several small caps are showing bullish technical setups: rising 50-day lines, breaks above 200-day moving averages and channel breakouts. Below are the highlights and price levels to watch. Targets generally refer to conservative next resistance areas given the current momentum.
How to Use These Notes
These are technical observations and short-to-medium-term targets based on price action, trend channels, RSI behaviour and moving averages. Use them as a framework:
- Confirm trend with moving averages (50-day and 200-day).
- Watch for clean end-of-day closes beyond key resistance or support levels.
- Use RSI and volume to judge the strength of breakouts or reversals.
- Be prepared for volatility, especially in small-cap resource names where gaps and rapid moves are common.
Risk Reminder
Chart levels and targets describe what the price structure currently suggests, not guarantees. Breaks of the highlighted supports or moving averages invalidate the bullish scenarios listed and increase downside risk. Keep position sizing and stop levels appropriate to the volatility of each instrument.
More updates will follow as the market structure and individual charts evolve.
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.
