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, Ajax, Altona, Applied Nutrition, Aminex, Amala, Block Energy, Fulcrum, Hardide, MTI, Raspberry Pi, Sovereign Metals, Vault, Xtract, Zoo.
The big-picture technicals still favour a constructive tilt across major indices, with a clear buy-on-dips bias rather than selling strength. Key momentum measures (RSI and moving averages) are doing most of the talking right now.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
FTSE 100
The FTSE continues to respect the RSI-60 bounce pattern and is sitting close to recent record highs. Important levels to watch:
- Near-term resistance: around 10,570 (projection from August).
- Immediate high to note: 10,535.
- Support / uptrend line: 10,330 (end-of-October uptrend).
- Target: a close above the red resistance line opens the runway to an 11,000 handle, potentially as soon as the end of next month.
DAX
The DAX remains range-bound between the 50-day moving average and the upper range level:
- 50-day: 24,600.
- Top of range: just above 25,000.
- RSI sits around neutral 50, so look for entries near the 50-day line or slightly below on weakness.
Dow Jones
Progress has been slow over the last month, but the rising trend channel remains intact.
- Near-term target: 51,000 within coming weeks or by the end of next month.
- 50-day / channel floor: roughly 48,800, providing the likely first support on any pullback.
- RSI above neutral 50 supports a buy-on-dips approach.
Bitcoin
Bitcoin is stuck in a middle range and forming what looks like a bear-flag continuation unless it escapes upwards.
- Range: $65,000–72,000.
- Bear-flag downside target: the floor of the rising channel near 57,000 unless there is an end-of-day close above 72,000.
Ethereum
Ethereum shows a similar indecision between support and resistance.
- Support: 1,900.
- Resistance: 2,150 (safe breakout level ~2,130–2,150).
- If Ethereum fails to reclaim those levels it could retest the falling-channel floor near 1,720.
Gold
Gold’s recent move included an overshoot, and it now trades inside a defined price channel.
- Channel top: 5,200 (recent overshoot above this).
- Channel floor: 4,550.
- 50-day moving average: 4,660—a sensible place to consider a limit buy on dips.
- RSI remains just above neutral 50, so trend still has some life.
Selected stocks to watch (targets and setups)
Below are the highlights for individual small- and mid-cap names showing defined technical setups. Targets are the proximate levels to watch, with timelines generally centered on the coming weeks to end of next month unless stated otherwise.
- Ajax: Consolidating above a rising 50-day (7.3p) after hitting an initial target under 9p. RSI 50 rebounds suggest another leg up. Next meaningful upside target: 13p (top of the black rising trend), possibly by the end of next month (or early April).
- Altona: Breakout from a triangle around 2.6p after US intervention catalysed sentiment. Aim for the upper parallel at 3.8p by the end of next month. Intraday support near 2.35p.
- Applied Nutrition: Beautiful rising trend channel from August. Key broken resistance near 247p now acts as support. Target: 310p by the end of next month.
- Aminex: Strong run since year end. The immediate channel top sits around 2.60p, with stretch upside to 3.16p next month if support around 2.00p holds. RSI has been consistently above neutral 50 since mid-December.
- Amala: Range-bound but showing an uptrend in the RSI and a break of a falling channel at 1.10p. A move above the triangle could reach 1.70p by the end of next month.
- Block Energy: Serial disappointment historically, but two held unfilled gaps above 1p give a short-term target of 1.44p by end of next month. 50 and 200 day lines are rising and a golden cross is near.
- Fulcrum:Transformed positively this year. First target hit near 7.8p, with a new target at 12p likely by month-end. Structural strength: rising 50 and 200-day lines plus a clean uptrend.
- HardideContract wins have materially improved the outlook. Short-term target 30p in coming days, with upside to 40p by the end of next month if momentum continues. Keep above 25p to remain bullish.
- MTI Wireless: No mainstream coverage, yet the chart reached the second target above 60p. Next aim is the March peak at 70p by the end of next month. Support to hold: 55p.
- Raspberry Pi: A UBS upgrade lifted shares sharply. The stock moved back above the 200-day moving average (389p). Target: as high as 460p by the end of next month, with recent broken resistance near 370p now acting as support.
- Sovereign Metals: Decent announcement and a bull flag above a significant unfilled gap to the upside. Multiple RSI 50 rebounds and rising 50/200 day lines point to a breakout above 35p, with a big target at 55p (top of the broadening triangle). A golden cross looks imminent.
- Vault (Aquis): Recovered strongly: initial target 1.2p, second target 1.6p hit last month. Next target: top of a broadening triangle around 2.8p potentially by the end of next month. Setup features a bear-trap gap reversal through the 50-day MA and an RSI 50 rebound.
- Xtract: Third time lucky on the breakout. A clear close above 1.1p would open the way to 1.3p by the end of next month. The shares have lagged the explorer-developer cohort so this would be catch-up.
- Zoo Digital: On the verge of a golden cross between the 50 and 200-day lines and forming a continuation bull flag. Breakout through 16.75p could take the stock to 22p by the end of next month.
How to trade these setups
Keep the approach simple and technical:
- Buy on dips into support: look for entries near the 50-day moving average or the lower trend channel in a confirmed uptrend.
- Wait for clean breakouts: a daily close above defined resistance (triangle top, channel, or a round-number level) validates the next leg up.
- Use RSI as a filter: repeated RSI 50 rebounds are a healthy sign; sustained readings above 50 favour the bulls.
- Manage stops: place them below recent structural support (50-day, channel floor or the last swing low).
- Time horizons: most targets here are short to medium term — weeks to the end of next month — so size positions accordingly.
Final thoughts
The overall technical picture is biased towards continuation for many setups, but a handful of names and crypto still need clear breakouts to avoid disappointments. Watching moving averages, RSI 50 behaviour and clean trend channel mechanics will make the difference between a reliable trade and a false start.
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.
