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, ACG Metals, Amaroq, ActiveOps, Catenai, Eco Buildings, EnergyPathways, Guardian Metals, Georgina, Hemogenyx, Harena, Jubilee, Mirriad, Switch Metals, and SThree.
The major indices are generally riding higher trend channels, cryptocurrencies look subdued beneath key moving averages, gold is powering on, and a handful of small-cap miners and tech names continue to deliver explosive short-term moves.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below is a concise, chart-focused read on the key indices, cryptos, gold and the small-cap names that featured today.
Major indices
FTSE 100
The FTSE is trading inside a well-defined rising channel established since autumn. Momentum is unusually strong: the relative strength index has been holding above the 60 level rather than the more normal 50 threshold, which is a bullish sign.
- Immediate resistance: 10,220 (top of the October rising channel)
- Key support: 10,100 (recent support), floor of channel 10,000
- Trade idea: An end-of-day close above 10,220 opens the path to fresh record highs. Stay long while the market remains above 10,100.
DAX
The DAX has cleared old October resistance and is on the right side of momentum. That suggests a runway toward the upper channel if it holds above key support.
- Important level cleared: 24,700 (old October resistance)
- Near-term target: 25,600 (top of the rising channel from April)
- Support to watch: 50-day moving average 24,200
Dow Jones
The Dow is inside a constructive rising channel. Sentiment has been patchy at times, but the technicals remain OK while the index stays above the channel floor.
- Channel top: 50,000; a sustained break projects toward 52,000
- Floor of the short-term channel: 48,800
- Support: 50-day moving average 48,100
- Momentum signal: RSI bounce above 50 adds to the bullish case
Cryptocurrencies — Bitcoin and Ethereum
Bitcoin
Bitcoin remains lacklustre. It has failed to hold above the neutral 50 RSI and is trading below both the 50-day and 200-day moving averages — not the environment for aggressive bullish calls.
- 50-day MA: 90,000
- 200-day MA: 104,000
- Channel floor / near-term support: 86,000; a deeper test around 80,000 would be the downside risk while below the 50-day line
- Takeaway: Positive momentum needs a reclaim of the 50-day to reduce the risk of further weakness.
Ethereum
Ethereum has broken down from its April rising trend channel. Both short- and medium-term moving averages are sloping lower.
- Broken level: 2,980 (April channel)
- Next support: 2,622 (November support)
- Outlook: Under the 50- and 200-day MAs, downside risk is higher until structure is regained.
Gold
Gold has been extremely strong and continues to outperform. The advance looks exponential and is likely due for at least a temporary pullback, but while it keeps making higher highs the trend stays dominant.
- Near-term resistance target: 5,140
- Recent resistance cleared: just under 5,000 (4,989)
- Extension target if momentum continues: 5,700 (October resistance projection)
- Warning: the run is extended — a corrective rugpull is overdue, but that does not invalidate the current strength.
Selected small caps
Plenty of momentum names are on the move. These are shorter-term, technically driven opportunities—keep strict stops.
ACG Metals
- Hit the target at the top of its rising trend channel (£15.80)
- Next target is the upper parallel of the channel, £21.50 (close to broker targets)
- Performance note: very strong YTD, already up 50% in the month so far
Amaroq
- Initial target 147p reached
- Upper channel target £2.00 by the end of Q1 if momentum holds
- Key level to hold: the gap high 139p on an end-of-day close
Activeops
- Nice steady rising trend channel
- Top of short-term channel £3.25 by the end of next month if current trend continues
- Support around £2.70p
Catenai
Shares are bubbling despite some uncertainty over the business model. Technicals look constructive.
- Near-term channel top 0.38p
- After that, a gap to targets in the 0.4p to 0.6p area
Eco Buildings
- Gapped through a triangle and closed above the 50-day MA at 16p
- Modest near-term target: 20p by end of February
EnergyPathways
- Broken resistance from Sep/Oct 4.9p
- Flip above the January resistance 5.12p on an end-of-day basis before assuming a move to 7p
- Best case: 10p by end of March if government-related approvals go the right way
- Technical note: RSI 50 rebound is a constructive leading indicator here
Guardian Metals
- Reached £2.00 at the top of its channel
- Next target: upper parallel near £2.80 by end of March at current pace
- Keep a stop under £1.80 on an end-of-day close to remain constructive
Georgina Energy
- Breakout above the 200-day MA and out of the falling channel
- Support cleared 5.88p; near-term target 10p (last spring’s resistance) by the end of next month
Hemogenyx Pharmaceuticals
- Bounced from the 50-day MA 6.4p
- Initial target 9.3p–9.4p by the end of next month; extended objective 10–11p over the following weeks
- Stop loss: the 50-day line at 6.4p
Harena Rare Earths
- Gapped higher toward the top of its rising channel
- Near-term minimum target 2.8p while above broken resistance 2.1p
- Multiple RSI 50+ rebounds suggest the move has legs
Jubilee Metals
- Trading in a wide rising channel; previous channel top 6.3p
- Remain constructive while above recent support 4.3p
- RSI structure supports further gains
Mirriad Advertising
- Multiple bounces at 0.005p
- Break of the 50-day MA (0.008p) would open a move to the triangle top 0.014p
- Timing: possible by the end of next month if momentum continues
Switch Metals
- Breakout and hit the top of the channel at 13p
- Next target 17p by the end of next month while staying above the gap floor 12p
SThree (S3)
- Shares are approaching the 200-day MA
- An end-of-day close above £1.99 would be a trigger to push toward £2.35
- RSI 50+ rebounds over recent weeks are encouraging as a leading indicator
Practical checklist for traders
- Respect end-of-day closes. Many breakouts are only confirmed by daily closes above the stated resistance levels.
- Use the 50-day and 200-day MAs as guardrails. They are acting as clear support and resistance on several names.
- Watch RSI 50 rebounds. An RSI recovering above 50 has repeatedly acted as a useful early indicator for upside continuation.
- Manage risk tightly on small caps. These moves are fast and a stop under the stated support levels (50-day, gap floor or recent lows) is sensible.
Markets continue to reward disciplined trend followers. Keep a list of the levels above, monitor end-of-day confirmations and treat these setups as technical opportunities rather than news calls. More updates tomorrow.
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.
