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, Avacta, Bezant, Delta Gold, Firering, Galantas, Inspiration Healthcare, MobilityOne, Premier African, SkinBio, Xeros.
Markets opened the month with a mix of technical rebounds and selective strength. Some indices have bounced off long-term trend floors, cryptocurrencies are showing renewed momentum, and a handful of small caps are staging interesting breakouts.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below are the practical levels, what they mean, and a few small-cap setups that deserve attention.
Broad markets: FTSE 100, DAX and the Dow
FTSE 100
The FTSE has bounced near the lower edge of a rising trend channel that’s been intact since late October. Important levels to watch:
- Immediate trigger: daily close back above 10,480 (February’s initial peak) — a potential buy signal.
- Next target: the old red target line, just under 10,700.
- Stretch target: up towards 11,000 (resistance projection from October) if momentum continues.
Technical support is reinforced by a clear RSI rebound above 50, which explains the current bounce. The geopolitical backdrop remains a risk, but from a chart perspective the path higher is available while the FTSE stays above the channel floor.
DAX
After downside gaps earlier, the DAX has found support at the floor of its rising channel (around 23,800). Key upside objectives:
- Fill the downside gap up to about 24,600.
- Re-test the 50-day moving average near 24,800 over the next week or two.
Crucial to the bullish case is not closing the day below the channel floor at 23,800.
Dow Jones
The Dow has bounced above the uptrend line that began in June and is currently between several reference levels. Watch for:
- Key resistance: a daily close above the 50-day line at 49,100.
- RSI: needs to recover above neutral 50 (currently around 43) to confirm momentum.
- Support: the floor of the channel / November uptrend line near 47,800 if the market sells off further.
Until the 50-day is reclaimed and RSI improves, the sensible stance is cautious.
Crypto: Bitcoin and Ethereum
Bitcoin
Bitcoin has pushed through near-term resistance and cleared the 69,300 level. The technical picture:
- Short-term target: the 50-day moving average near 75,900.
- RSI: back above 50 for the first time since mid-January — a constructive sign.
- Risk: if price slips below 69,000, the floor of the near-term channel near 62,000 becomes a potential target.
Ethereum
Ethereum has broken the near-term channel at around 2,070 and is eyeing the 50-day moving average at 2,350. Expect this to play out over the next week or two if momentum holds. On the downside, a re-test of lower support would be the alternate scenario.
Commodities: Gold and Crude
Gold
Gold has been somewhat counterintuitive: despite broader risks, it has not surged back to January highs. The technical outlook:
- Immediate objective: resistance at the top of the channel near 5,300.
- Key support: staying above 5,000 is important for bullish continuity.
- RSI action: multiple RSI 50 rebounds since the start of the month support the case for a move up to 5,300.
Crude oil
Crude remains interesting because, despite geopolitical tension, prices are not as high as some might expect. Chart levels to watch:
- Initial hurdle: clearing the old June resistance near 77.60.
- Next resistance: the spring 2024 resistance area around 86.
- Remember many traders took positions at lower levels earlier in the year, which can influence price action and volatility.
Small caps and speculative names to watch
Several AIM and small cap names are showing meaningful chart action—breakouts, gap moves and RSI rebounds. These can be high reward but also higher risk, so keep position sizing conservative.
Avacta: Shows a three-steps-up, two-steps-down progression with rising 50-day and 200-day lines. It cleared recent resistance in the mid-to-high 60s pence and has upside to the channel top around 90p early next month if momentum continues.
Bezant: Rising trend channel since July, with the top aimed near about 0.16p by the end of next month while staying above the rising 50-day moving average around 0.10p. A gap to the upside remains unfilled from last month.
Delta Gold: Volatile and rarely dull. Recent trading shows gap and reversal behaviour — opens at the low and closes at the high, repeatedly. Technical target near 80p while maintaining above 50p and the January rising-channel floor.
Firering Strategic: Some long-suffering names are finally finding traction. Look for the price clearing the rising 50-day moving average. Short-term target examples: around 2.1p for one recovering stock while holding above broken resistance at 1.44p.
Galantas: Retested January resistance around 34p. Clearing that opens up a quick target toward 42p in the short term.
Inspiration Healthcare: Nice RNS-driven action and a solid chart: a bear trap gap reversal in January followed by another gap today. Expect a short-term target near 27p while staying above support at 23p.
MobilityOne: Vertical move this week with recent resistance broken at about 7.25p. Upside target in the region of 14p, corresponding to the top of a broadening triangle pattern from 2022.
Premier African: Still speculative, but bullish divergence and better company news have helped. Recent break above 0.02p and the 50-day near 0.029p make a near-term reference point while monitoring for surprises.
SkinBio: Cleared an initial target near 7.7p and is eyeing prior support / gap top around 12.3p. Stay above the recently established support near 9.12p mid-price.
Xeros: Positive news and an attempt to break the 200-day line near 1.6p. The top of the current range sits close to 2.2p; keep 1.4p as the support reference while the breakout attempt continues.
Practical takeaways
- Watch key trend floors — many markets are bouncing at the lower edge of long rising channels; losing those floors would shift the outlook.
- RSI matters — rebounds above 50 are consistently signalling short-term momentum improvements across several assets.
- Manage geopolitics — chart signals are constructive in many cases, but geopolitical risks can rapidly change the risk/reward balance.
- Small caps require discipline — gaps, spike moves and RSI signals offer opportunities, but position size control and stop discipline are essential.
More updates will continue as price action evolves. Keep the key levels above in your watchlist and let price and RSI dictate the next steps.
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.
