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, Avacta, Alkemy, Ajax, Galantas, GreenRoc, IMC, N4 Pharma, Orosur, Pipehawk, Raspberry Pi, Sovereign Metals.
Markets are a mixed bag this morning. The FTSE 100 remains inside a rising channel and can still reach higher levels if it holds key support, while some US indices and cryptocurrencies are showing signs of fatigue.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices — where the momentum sits
FTSE 100
The FTSE is trading inside a defined rising trend channel from late October. The upside target remains around 11,000 while price stays above the old target line at 10,620 (end‑of‑day close basis).
If the market closes below 10,620 then a deeper pullback toward around 10,480 becomes the more likely scenario. Momentum looks tired, but the bullish case remains intact while that support holds.
DAX
The DAX continues its familiar range between the 50‑day moving average and roughly 700 points above it. The 50‑day sits near 24,700 with resistance around 25,300.
RSI remains above the neutral 50 level, so a bounce is possible — the key bullish element has been repeated support above the rising 50‑day moving average. A break above the resistance channel would test record highs (the March highs).
Dow Jones
The Dow has slipped out of the tight rising channel that began in late November. The 50‑day moving average at about 49,000 has been lost on a close basis; more immediate support sits near 48,500.
If price can close back above the 50‑day line, a move to 51,000 by the end of next month remains plausible. If not, watch for a deeper fall toward the June uptrend line around 47,700 (and the 200‑day line lurking beneath).
Cryptocurrencies
Bitcoin
Bitcoin has broken recent support at 65,000, producing a double failure and leaving RSI in the low 30s — a bearish configuration. The falling trend channel points to a floor near 52,000.
Near term: initial downside target 60,000; worst case by the end of next month 52,000. Only an end‑of‑day close quickly back above 65,000 would invalidate that downside path. Upside resistance to watch is the post‑decline resistance near 72,000.
Ethereum
Ethereum has slipped below the key 1,900 level. That opens a move to the floor of the falling trend channel from July, roughly around 1,570–1,580.
Recent RSI failures in the mid‑30s increase the likelihood of further weakness. On the upside, a move back above 1,900–2,150 would point toward a recovery.
Gold
Gold is sitting at the top of a rising trend channel around a nominal 5,210 marker. It has pulled back from that level but the RSI is comfortably above neutral (upper 50s) and bouncing at 50, which keeps the tone healthy.
A close back above the channel top would open a target near 5,500 by the end of next month. Immediate support at about 4,980 should hold if the bullish case is to remain intact.
Selected individual stocks — technical setups to watch
Below are the names showing actionable patterns, key levels and short‑term targets. Timeframes refer to the coming weeks unless otherwise noted.
- Avacta Group — Broke through the 50‑day moving average with a gap higher after a positive update (phase one news). RSI trend in the indicator window is rising. Initial target 64p, then the November support area near 72p. Keep above the gap floor at 58p.
- Alkemy Capital — Battling for strength. A projection puts resistance near £5.00 (artificial but useful) while recent support sits around 375p. Ideally remain above 4p en route to 5p. RSI has already shown two rebounds above 50.
- Ajax — Consolidation around 8p, then a bounce above a rising 50‑day line — a classic sideways shuffle above the 50. Short term target 9.1p, best case up to 13p provided it stays above 7.4p.
- Galantas Gold — Strong rebound after a small bear trap below 17p. Already cleared the 2 January peak. Retest of the year‑to‑date highs near 35p looks possible in the first half of March.
- Green Rock — Multiple RSI rebounds above a rising 50‑day and 200‑day moving average. Target a retest of June resistance at around 4.5p while remaining above support near 3.5p.
- Guardian Metal — Trading near the top of a rising trend channel, nominally above 205p. A fresh leg higher could take the share up toward the upper parallel near 270p by the end of April. Repeated RSI rebounds around the mid‑50 area support further upside.
- IMC Exploration — Shares gapped higher after an RNS today. A close above 2.1p would set up a retest toward 2.85p, provided support holds at 1.5p.
- N4 Pharma — Sitting at the floor of its range but the 50‑ and 200‑day lines are rising. A golden cross is approaching and the run‑up to that often produces the strongest gains. Look for tests of resistance near 0.65–0.66p while above 0.5p and the 200‑day MA.
- Orosur Mining — Cleared the 50‑day line in a bear trap/island reversal after a gap up. Expect the shares to at least fill the new gap down to 33p in the coming days, with upside potential toward 45p.
- Pipehawk — Showing a step ascent pattern; strong above rising 50 and 200 day lines. First target is the December peak near 2.9p while remaining above the 50‑day at 1.86p.
- Raspberry Pi — Bounced off and is just below the 200‑day after a large move driven by coverage. Watching the top of the red triangle near 480p over the next week or two while the 200‑day sits around 387p.
- Sovereign Metals — Finally showing the expected rally: broke recent resistance at 43p. Targets around 57p within a week or two. Golden cross in place, RSI consistently above neutral 50 — looks like a strong trending situation.
How to prioritise these setups
When scanning for trade ideas from this list, keep a simple checklist:
- Trend alignment — Is price above the 50‑day and ideally the 200‑day? That favours the long side.
- RSI behaviour — Rebounds above 50 or a neutral 50 bounce add conviction.
- Clear levels — Note the gap floors, rising trendlines and defined resistance points for entries and stops.
- Timeframe — Many targets are short‑term (weeks); adjust position sizing and stops accordingly.
Key levels at a glance
- FTSE 100 support: 10,620; upside target 11,000.
- DAX 50‑day: 24,700; resistance near 25,300.
- Dow 50‑day: 49,000; immediate support 48,500; June uptrend line ~ 47,700.
- Bitcoin: support-turned-resistance 65,000; downside target 52,000.
- Ethereum: key break 1,900; downside zone ~ 1,570–1,580.
- Gold: channel top around 5,210; support near 4,980; target 5,500 if momentum resumes.
Final thoughts
There is a clear split between constructive setups in commodities and a number of smaller stocks with definable technical paths, versus weakness in parts of the US market and crypto space. Keep the simple technical checklist handy: trend, RSI, and clean levels. That approach highlights the names most likely to produce reliable moves in the coming weeks.
More updates will follow as these levels are tested and new information emerges.
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.
