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, Boohoo, Cobra, East Star, Ferrexpo, Greenroc, Hydrogen Utopia, Jangada, Mkango, Metals Exploration, RC Fomax, Sound Energy, Sanderson, Valereum.
Compact technicals and clear levels across major indices, crypto and a selection of small caps. The tone is bullish for a number of markets while still respectful of the risks that come with late‑cycle rallies and stretched momentum. Below are key setups, support and resistance levels, and practical triggers to watch.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
The big picture is constructive. Momentum indicators and moving averages favour higher prices, but price behaviour around key moving average support and trend channel floors will determine whether the next leg is sustainable.
- FTSE 100: Mid‑move consolidation between about 9,700–9,750 looks like a springboard for another leg higher. While price stays above the recent 3‑day support near 9,690 and comfortably above the 50‑day moving average at 9,573, the path higher is open. A year‑end / early‑new‑year target to note is 10,000. The 50‑day has acted as a reliable dip‑buy region since May.
- DAX: Positive picture after a bounce above the rising 200‑day line and an RSI back above 50. Near‑term target is the 50‑day at about 23,900, with a more ambitious break above 24,300 by week end opening the April rising channel top near 26,300. The channel floor around 23,100 is the downside guard.
- Dow: Slight pullback from recent highs but still sitting near the top of its rising channel. Keep an eye on the 50‑day at roughly 46,700; as long as price remains above that, the upside target around the channel top near 49,000 is plausible this month. A deeper test of the channel floor near 46,000 would be the worst‑case technical read.
Cryptocurrencies
Crypto charts are mixed: Bitcoin shows vulnerability after failing to reclaim prior support, and Ethereum needs a clearer break to resume bullish momentum.
- Bitcoin: The chart shows a failure beneath a recent resistance line and tentative support around 87,000. Falling below that exposes a risk of testing 80,000 again. A clean reclaim of the old 93,000 level would shift the short‑term bias back to the upside.
- Ethereum: Rejected at an October resistance line. A constructive scenario would be a higher low versus November support near 2,622 (yesterday’s low ~ 2,719) and then a break through the October line. The practical long triggers are an end‑of‑day close above roughly 2,920 or a decisive push through the RSI resistance near the 40 level. Failure to regain these levels risks a fall toward 2,000. If Ethereum clears the October resistance decisively, the confluence of the 50‑ and 200‑day averages near 3,500 becomes a primary upside target.
Gold and commodities
Gold has managed a breakout and is showing follow‑through potential while remaining respectful of its 50‑day support.
- Gold: Broke through the October resistance area near 4,150 and is now looking toward 4,600 as a medium‑term target. The 50‑day around 4,039 provides a sensible stop‑out point for momentum trades.
Small‑Cap Setups
These bulletin‑board names show clear chart patterns and specific triggers. The timeframes mentioned are mostly short to medium term (end of the month or end of next month) and assume continuation of the current technical picture.
- Boohoo: A V‑shaped bull flag has formed. A close above the nearby resistance at about 21p would leave the mid‑term target near 40p.
- Cobra Resources: No decisive follow‑through yet after recent rallies, but a break above the old October resistance near 4.8p could open upside toward 7.8–8p. Both 50‑ and 200‑day lines are now rising in parallel — bullish.
- East Star: Pausing near the top of a rising trend channel. While it holds above about 2.5p expect further upside; a run above 3–3.4p is feasible by month end.
- Ferrexpo: Broke out through a mid‑move consolidation above 76p. The upper parallel of the rising channel near 93p is the next logical target if momentum continues.
- GreenRoc: Bull flag sitting on a rising 50‑day line, RSI rebounding above 50. Support near the 50‑day at 2.6p, target 4.2p into next month.
- Hydrogen Utopia: Fresh RNS and strong chart signals. Break above the earlier resistance at 2.5p exposed a path toward 5p and beyond, with little chart congestion between 5p and 10–12p. 50‑ and 200‑day lines are rising sharply; an end‑of‑day close above the June peak near 4.2p would be a useful confirmation.
- Jangada: Pushing toward the short‑term target around 2.25p. If that is cleared the old 2022 support area near 3p becomes a logical next objective.
- Mkango: Recovering after bouncing from prior resistance around 40p. A convincing end‑of‑day close above the 50‑day near 51p would target the gap at 49p and a re‑test of the 60–65p resistance zone.
- Metals Exploration: Rising channel with a top near 20p. While price remains above the broken late‑Oct/Nov resistance and the 50‑day (12.9p), the upside edge looks intact.
- RC Fomax: After a gap down then a gap higher, staying above the gap floor near 6p would keep a move toward the gap top near 10p on the table. Filling the gap would compromise this bullish case.
- Sound Energy: Dynamic move with rising 50 and 200‑day lines and an approaching golden cross. Short‑term target around 1.25p this month; rising moving average structure favours continuation but watch for profit‑taking on the second day of any sharp rally.
- Sanderson: Bullish divergence on the RSI (lower lows in price but a slightly higher RSI). Keep the channel floor near 43p as the key downside reference; upside target around 60p if divergence holds.
- Valereum: Strong performance continues. Initial and secondary targets were around 7.75p then 14p, with a longer stretch target near 27p later in the month if momentum persists. Maintain bullish risk while above 14p, with a looser stop around the old February support near 18p for tighter risk control.
Practical trading checklist
- Use end‑of‑day closes to confirm breakouts or breakdowns. Intraday noise can be misleading on small caps.
- Respect moving averages — the 50‑day has repeatedly acted as a buy zone on several names; the 200‑day provides a broader structural floor.
- Watch RSI thresholds for confirmation: moves above 50 (or a return above an RSI resistance like 40) often precede sustained legs.
- Mind gaps: unfilled gap zones are natural targets; filling a gap can invalidate short‑term bullish setups.
- Define stops before entry — for momentum trades use a close below a recent swing low or beneath a key moving average.
“10,000 maybe is a magic number for the end of the year.”
Technical profiles favour more upside in many markets, but discipline around confirmations, stops and risk management separates successful trades from wishful thinking. Keep the levels above in your watchlist and treat breaking or holding those zones as the deciding factor for the next directional bets.
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.
