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, Bezant, CleanTech, ECR, Galantas, Hot Rocks, MobilityOne, Oriole, Pulsar, Proteome, Richmond Hill, Touchstone, WeCap.
The markets started January with momentum across major indices, a renewed bounce in crypto and a handful of small-cap charts that are flashing clear technical setups. Below, I run through the levels I’m watching, why they matter, and a shortlist of smaller stocks that look interesting from a charting perspective.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market snapshot
Overall tone: constructive. The FTSE has climbed back above the 10,000 mark, the DAX and Dow are trading in or near fresh highs, Bitcoin and Ethereum are showing early-year recoveries, and gold is trying to firm up after a short-lived wobble. That gives us a simple framework: look for continuation while key support levels hold, and be ready for short-term pullbacks to moving averages if sentiment cools.
Major indices — levels to watch
FTSE 100
The market is sitting above the recent resistance around 9,970 — that resistance has now become support. Short-term upside targets are the top of the rising trend channel from February near 10,100, with a best-case scenario pushing to roughly 10,500 by the end of February if momentum continues.
On the downside, I’m watching support near 9,840 and the 50-day moving average around 9,741. A clear close back below those levels would raise the risk of a deeper pullback.
DAX
After a long period of stall through much of last year, the DAX is now trading in higher territory above about 24,770. The upside projection is the top of the April trend channel, which could take price toward 25,700 by month-end. If sellers return, look to the old December resistance near 24,500 as the first meaningful support.
Dow Jones
The Dow is in record-high territory and recently revisited the top of its rising channel (recent highs around 49,200). A natural psychological target is 50,000 — I’d expect that level to be tested before the end of the month if momentum holds. Defensive support would be the 50-day moving average near 47,600.
Cryptocurrency outlook
Bitcoin
Bitcoin has shown a decent start to the year. It cleared the 50-day moving average at roughly 89,000, and the immediate roadmap is first to 94,000 and then toward the 200-day moving average target of around 106,000 by the end of the month if the trend remains intact.
If you want a conservative trigger: wait for an end-of-day close above about 95,000 before assuming the 106,000 run is on.
Ethereum
Ethereum has cleared the 50-day line (around 3,013) and is above early-January resistance near 3,150. The next larger technical target is the 200-day moving average, roughly in the 3,600–3,700 area by month-end, which also coincides with the October resistance slope.
Gold
Gold experienced odd price action around recent macro headlines but looks constructive above yesterday’s near-term resistance. The chart suggests a retest of the prior peak is possible in the weeks ahead, while the lower edge of the October uptrend acts as the main downside cushion.
Small-cap picks and technical setups
Here are the smaller names I’ve been watching. I focus on clean technical signals: RSI rebounds above 50, clear breaches of moving averages, unfilled gaps on the upside, and classic continuation patterns such as bull flags and golden crosses.
- Bezant — Hit the top of its rising trend channel. Key levels: stay above the initial January support (around 0.12p) and a realistic near-term target is about 0.18p.
- CleanTech lithium — After consecutive chunky RNSs, the shares blew through June resistance and the 200-day line. I’m targeting around 10p by month-end while the stock remains above the unfilled gap (6.75p).
- ECR — Bullish divergence plus a golden cross to start the year. Need a break above about 0.33p to put a more conservative target near 0.46p on the table, with support around 0.30p.
- Galantas — Hit the local target line near 8.75p. Above that, an ambitious target around 20p (a 2023 resistance projection) is visible, with initial support around 7p.
- Hot Rocks — Doing well after a gap up. A breakout through roughly 1.75p could put 3p within reach by month-end; the 50-day moving average near 1.38p is the key support zone.
- MobilityOne — Momentum has carried the share price; best-case technical target is around 14p while remaining above the mid-range support near 7–8p.
- Oriole — Second-time breakout through 0.34p would open a move to around 0.50p in the near term, supported by repeated RSI 50 rebounds.
- Pulsar Helium — Nice gap higher. The top of the August rising channel suggests a target in the low 60p area, and unfilled gaps make the upside path cleaner.
- Proteome Sciences — Chart shows RSI staying above neutral 50 with break of a Feb resistance line. Above 3p, look toward roughly 5.5p by next month if momentum holds.
- Richmond Hill — Approaching the initial target at the top of the October rising channel (2.44p), with further resistance up around 3.12p.
- Touchstone — Progress above the 50-day line; the plan is for a potential move to about 14–15p while the 50-day 8.37p holds.
- WeCap — Recently bounced above a rising 200-day line and the 50-day, making a retest of higher levels likely as lock-in deadlines approach. A retest of around 4p is plausible while the stock stays above the mid-2p area.
Technical themes to keep in mind
- RSI 50 rebounds have been a reliable leading indicator on a number of these charts. Multiple rebounds above 50 often precede acceleration.
- Moving averages (50-day and 200-day) are acting as the clean filters for trend bias. As long as price stays above them, the bias remains constructive.
- Unfilled gaps to the upside are useful leading indicators on small caps. Gaps created on breakouts often point to further follow-through.
- Trend channel edges provide practical targets and the first line of dynamic support and resistance — use them to frame targets and stop placement.
How I’d trade this setup (practical rules)
- Prefer trades where price is above the 50-day and shows RSI 50 rebounds.
- Use an end-of-day close above key trigger levels (for example, Bitcoin above 95k) before increasing exposure.
- Place stops beneath logical chart support: beneath the channel floor, the 50-day, or the recent swing low depending on risk appetite.
- Manage position size: let winners run toward channel tops and use scaling out rather than an all-or-nothing exit.
Final thoughts
The start of the year has been favourable for many asset classes. The simple read is: bulls are in control while price remains above the key moving averages and trend channel floors. That gives scope for targets up to the channel tops across indices, crypto and a number of small caps. But as always with technically driven markets, keep an eye on the 50-day and the nearest support levels so you can react quickly if momentum fades.
I’ll be tracking these levels and charts closely over the coming sessions and will update positions as the price action confirms or invalidates the current setups.
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.
