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, Silver, Alba, Astrid, Cykel, Correro, World Chess, CleanTech, MobilityOne, Oxford Biodynamics, Proteome, Seed Innovations, Truetide, Tooru, Vault.
Markets are settling into the new year with a familiar mix of momentum and short-term profit taking. Major indices are trying to find support after runs higher, cryptocurrencies are testing short-term moving averages, and a handful of smaller stocks are showing early signs of technical turnarounds. Below I pull together the key levels, likely scenarios and practical targets to watch across indices, crypto, precious metals and selected small caps.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major Indices: where the support and resistance sit
FTSE 100
The FTSE pulled back from the top of its rising channel and is hovering near the 9,880 area. That zone should act as immediate support; the psychologically important 10,000 level remains the line in the sand for near-term momentum.
- Immediate support: 9,880
- Key short-term support: 10,000
- Resistance to clear: 9,970 then a retest of 10,150+
- Scenario: hold above 10,000 and expect a re-test of higher channel highs later this month. Failing 9,880 risks a deeper pullback.
DAX
The DAX is positive and appears to be heading toward the top of a rising trend channel formed since April. Both the 50 and 200 day moving averages are rising, which supports the momentum while above the old October resistance at 24,700.
- Support: 24,700
- Potential target: just under 26,000 as an end of month objective
- Outlook: constructive while price holds above the October resistance and the rising moving averages.
Dow
After some early-week strength, the Dow backed off from the top of its channel. The channel still provides a useful map for likely support and resistance levels.
- Near resistance: channel top around 49,700; extended target near 50,000
- Key short-term support: previous resistance at 48,800 and the 50 day line around 47,700
- Outlook: a close above 48,800 would be reassuring. A sustained move below that opens a deeper test of the 50 day.
Cryptocurrencies
Bitcoin
Early January optimism faded into a failed breakout — essentially a mild bull trap around December resistance. The 50 day moving average is now the key short-term guardrail.
- Short-term support: 50-day MA ~ 89,000
- Next support area: late-2024 uptrend line around 86,000
- Upside path: as long as price stays above the 50 day, a retest of 94,000–95,000 is possible, with an extended target near 106,000 by late next month in the best case
- Warning: failure under the 50 day would increase the risk of a deeper pullback towards the uptrend line.
Ethereum
Ethereum is battling the psychological and technical 3,000 area where the 50 day sits around 3,017. Momentum is fragile, but there is a clear route higher if the 50 day holds.
- Current guardrail: 50-day MA ~ 3,017
- Near-term resistance and target: 200-day MA ~ 3,617 by the end of the month in a bullish scenario
- Support: April uptrend line near 2,940
Precious metals: ranging after the volatility
Gold
Gold has settled into the middle of a range after a volatile patch. A rising channel from late November provides structure, with the floor and ceiling giving useful entry and target levels.
- Current price area: around 4,429 (index or pricing unit used here)
- Support: channel floor near 4,310 and the 50 day around 4,202
- Upside target: top of channel and November resistance near 4,810
- Trade idea: consider limit entries near the 50 day (roughly 4,200) if not already positioned.
Silver
Silver remains in a mid range between the 70 and 85 levels. The technical picture remains bullish while price holds above 70, with upside towards the September resistance projection near 85.
- Range: roughly 70–85
- Bias: bullish above 70, watching for a run toward 85 as the next meaningful resistance.
Selected small caps and bulletin board stocks
Several small-cap names are showing promising technical patterns: breakouts, rising moving averages and constructive channel behaviour. The focus below highlights where the action is and what to watch.
Alba
- Working above a rising 200 day MA near 0.019
- Resistance to clear for momentum: around 0.026 with a target of 0.035 if that level is taken out
Astrid Intelligence
- Signs of a bottom and a break above resistance near 0.12
- Short-term target: 0.17 by the end of the month; break of the rising 50 day is a positive signal
Cykel AI
- Broken out of a falling channel and now above the 33p breakout level
- Targets: older support turned resistance at 81p by end of next month; key short-term close above the 50 day at 36p
- Bullish divergence into late December supports the turnaround thesis
Corero Network
- Stock has struggled but is now just below a rising 50 day with a recent gap close signal
- Potential target: 13p by the end of the month while staying above the channel floor and the 50 day (~9–12p)
World Chess
- Multiple support tests near the 0.50 zone and a test of the 50 day at 0.85
- Target scenario: up to 1.4 by the end of next month if the 50 day breaks to the upside
CleanTech
- Strong start to the year, initial target 10p reached and now aiming for 14p
- Short-term support: remain above 8p
MobilityOne
- Big run so far with a need to find support; recent lows held near 6p
- Stretch target if momentum continues: 14p by month end
Oxford BioDynamics
- U-shaped recovery following fundraising pressures; look for a close above the 50 day and an RSI push above 50
- Triangle top target near 0.39 with near-term support around 0.22
Proteome Sciences
- Good news flow earlier has not yet led to a sustained breakout; failed around 4p but remains above broken resistance at 3p
- Target if momentum returns: 5.5p
Seed Innovations
- Bounced above a rising 200 day MA and has now cleared the 50 day at about 3p
- Target: 5p by the end of next month
Truetide
- Looks to be forming a broadening triangle with bullish divergence into the lows
- Break above the 50 day near 2p opens a move toward 2.8p
Tooru
- Has the characteristics of a rising trend channel after an outfill gap and bounce above the 50 day at 0.25p
- Target from earlier levels: 0.41p while above the 50 day
Vault
- Economy of the breakout: the stock has cleared the top of a falling channel from September and gapped through the 50 day
- Short-term target: 1.6p and the 200 day by month end while support holds near 1.1–1.2p
Putting it together: risk management and trade ideas
Technical trading is mostly about levels and probabilities. The consistent themes here are:
- Watch the 50 day moving average for short-term trend confirmation. Many of the names above need to hold or retake their 50 day to keep the bullish case intact.
- Identify clear support and set stops just below those levels to limit downside risk.
- Target the next logical resistance or channel top for exits. A measured, staged approach to taking profits preserves upside if the trend continues.
Short-term targets are achievable for several names if they remain above the relevant moving averages and channel floors. If markets roll over and break those supports, expect corrective moves and reassess levels at that point.
More updates will follow as price action evolves and new technical signals appear.
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.
