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, Cap-XX, Directa, Hemogenyx, Kropz, LPA, Mineral & Financial, Phoenix Copper, Seraphim, Tungsten West, Tullow.
Short-term technicals still ruling the day. A lot of the major indices are trading inside rising channels and several small-cap names are showing clear step formations or RSI-based setups. The common theme is that an end-of-day close through key levels will tell you whether the next leg is higher or whether a pullback is due. Keep an eye on 50-day and 200-day moving averages as sensible places for limit orders and stops.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Indices
FTSE 100
Range-bound inside a rising channel at the moment. The base sits around 10,280 with the top nearer 10,520.
- Key trigger: an end-of-day close through 10,400 would open up the run to 10,520.
- Buying opportunity: dips toward 10,280.
- RSI: low 60s and looking a little tired — caution for short-term consolidation or a small pullback.
DAX
Momentum recently pushed the DAX up to the 25,000 area faster than expected. The technical picture remains constructive.
- Upside projection: resistance line targeting 25,700 by the end of the month.
- Support: 50-day line near 24,500 — sensible place for limit orders if you are not in the market yet.
- RSI: 57 — in a good position for a continuation higher unless there is a rug pull.
Dow
The Dow is all about the psychological and technical level around 50,000. Holding above that on a closing basis is notable.
- Short-term: expect a run toward 51,000 in the coming days.
- Medium-term target: channel top near 52,400 by the end of next month.
- Support: 50-day line around 48,600, which aligns with the channel floor.
Cryptocurrencies
Bitcoin
Currently looks like a bear flag — a third consolidation after previous flags.
- Warning: an end-of-day close through 67,000 on the downside could drop price into the sub-65,000 area and potentially toward the channel floor near 59,000 sometime this month.
- RSI: flattening in the low 30s — not a great look and suggests downside risk before any sustainable recovery.
- Bull case: an end-of-day close well above 72,000 would reopen a move into the upper 70ks.
Ethereum
Consolidation is holding above the psychologically important $2,000 mark, but resistance sits at $2,150.
- Trigger for higher: end-of-day close back above $2,150 to target roughly $2,400.
- Downside risk: RSI is curling down; a move to $1,700–$1,720 is possible during February even if there is a bounce afterwards.
Gold
Extremely volatile. For traders, the 50-day line remains the practical place for limit orders because price action can whip around quickly.
- Immediate resistance: around the 5,100 zone — needs an end-of-day close above that to target 5,500–5,680.
- If rejected: watch for bounces near the 50-day line; expect choppy action.
- Trading style: not for conservative buy-and-hold accounts given current volatility.
Stocks to watch
Several bulletin-board and small-cap names show clear setups — rising channels, step formations, RSI 50 rebounds and defined resistance lines. Here are the highlights and practical levels to watch.
Cap-XX
- Recent follow-through after a strong close; opened low and closed high.
- Key level: end-of-day close above the 200-day moving average near 0.27p to confirm momentum.
- Target: 0.37p — aim for this before month end if the breakout holds.
Directa Plus
- Equalled old June resistance — first target achieved.
- Trigger: above 21p on a day close to target 26p by month end.
- Risk: stay clear if it trades back below 18p, which was recent resistance turned support.
Hemogenyx
- A dip after a placing but signs of recovery.
- Short-term: cleared the first target around 960p and is aiming for the upper parallel of the rising channel near 1,325p.
- Warning: a move back below the 960 zone would imply the placing is weighing materially on the share price.
Kropz
- Illiquid, but the chart shows a classic step formation — one of the strongest bullish structures for small caps when the move arrives.
- Recent action: closed above recent resistance near 0.86p.
- Target: at least 2.5p by the end of the month when momentum resumes.
LPA Group
- Already hit the first target at 60p.
- Best case: upside as high as 84p later this month if strength continues.
Mineral & Financial
- Strong rising trend channel in place.
- Target: top of the channel near 66p possibly by month end.
- Support/resistance: must stay above the 48p zone and ideally the right side of 50p.
Phoenix Copper
- Soothing RNS helped the stock bounce off the floor of a falling channel around the 1p level.
- Initial resistance: 1.75p, with nearer-term rebound potential to 1.4–1.5p.
- Note: there is an RSI hint of bullish divergence — price went lower on the news but RSI did not fall as much, suggesting pent-up rebound energy.
Seraphim Space
- Broke resistance recently (around the 113p area highlighted earlier).
- Projection: September resistance line projects to about 182p by the end of next month if the move continues.
- Confirmation: two recent RSI 50 rebounds support the bullish case.
Tungsten West
- On to a stock that keeps on giving
- Some one on Twitter (X) have ten bagged with this stock
- First highlighted hear in the 10p/12p area
- Above 37p looking for up 53p – stay on the right sided of todays low of 34p
Tullow Oil
- Multiple RSI 50 rebounds since the start of the year — a sign of pent-up strength.
- Initial target: 9.75p.
- Best case: up to 11p by the end of next month, provided we stay above the channel floor near 7p.
Practical takeaways
- Trade confirmations matter: favour trades that are confirmed by an end-of-day close through key levels rather than intraday noise.
- Use the 50-day and 200-day lines: they remain meaningful places for limit orders and support/resistance in volatile names.
- Watch RSI behaviour: RSI 50 rebounds and bullish divergence are useful for spotting pent-up strength in smaller-cap charts.
- Position sizing: many of these stocks are illiquid — size positions accordingly and be ready for choppy moves.
Closing note
The market is offering clear technical stories across indices, crypto and smaller-cap names. Let price, RSI behaviour and key moving averages guide entries and exits rather than hope. Expect volatility, pick your levels, and place limit orders near sensible support lines.
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.
