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, Crude Oil, Amigo, Ascent, CleanTech, Emmerson, Eco (Atlantic), Rainbow, Westmount, and Zenith.
Markets feel a touch indecisive. After a solid session yesterday, several indices failed to hold early support levels and have spent the last couple of days chopping around. That leaves a mixed picture: some indices flirting with key moving averages and trend-channel floors, while a handful of small-cap names are showing clear breakout behaviour.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Index snapshot: FTSE 100, DAX and Dow
FTSE 100
The FTSE tried to push above early March support near 10,400 but has been blocked around 10,420. The immediate risk is an end-of-day close back below the 50-day moving average, currently around 10,341, which could open a drop toward the channel floor set in October and the lilac support line near 10,080.
Technically, the recent bounce from around 10,080 felt too smooth and was quickly reversed, aided by lower oil prices. The RSI has failed at the 50 level after a brief tick above it — a potentially negative signal while price remains below 10,400. If that holds, a test of the 10,000 psychological level is plausible.
DAX
Volatility has been the name of the game on the DAX with gap moves in both directions. The key levels are:
- Support: yesterday’s support at 23,765, then the channel floor toward 23,000
- Resistance: the 200-day moving average around 24,100–24,200
As long as price stays between yesterday’s support and the 200-day line this is a range-bound market — keep position sizes small and let a clear break define the next move.
Dow
The Dow bounced to test old support near 48,200 before turning lower. The likely path still looks like a re-test of the July uptrend line in the 46,700 area and possibly the 200-day moving average at about 46,400 if the recent sell-off needs to be worked through.
RSI is in the mid 30s, which is not encouraging. Below 48,000 risk rises for another leg lower toward the major moving average.
Crypto pulse: Bitcoin and Ethereum
Bitcoin
Bitcoin sits in a neutral range. RSI is close to 50, and price is trading between the breakout line near 68,000 and the 50-day moving average at roughly 70,800. Within that band the path of least resistance follows the October breakdown — a test of the 60,000s is a clear risk.
The main bullish reversal would be a strong RSI push above 50 and an end-of-day close back above the 50-day MA. That would open a move toward the top of the falling trend channel from August near 80,000.
Ethereum
Ethereum is less constructive than Bitcoin right now. It trades in a mini trend channel with a top near 2,170 and a floor around 1,770. The RSI still contains an uptrend line, giving the benefit of the doubt for a move to the 50-day MA at about 2,205, but the downside remains toward the channel floor.
Commodities: Gold and WTI crude
Gold
Gold is range-bound between roughly 4,918 (the 50-day line) and the top of the rising trend channel near 5,300. Volatility could see limit orders executed around the 50-day line. A decisive break above 5,300–5,310 would target the next big move up toward about 5,880.
WTI Crude
Price has turned previous resistance into new support around $77. The likely range is somewhere between the mid $70s and the high $80s–$95 area, with $100+ looking harder to reach unless geopolitics around Iran intensify dramatically. For now assume the market spends most of its time in the 80s.
Small-cap picks: potential breakouts and targets
Several bulletin-board names are showing interesting technical patterns. Below are the highlights with the key levels and timelines I’m watching.
Amigo: Shares remain inside a rising trend channel targeting the top around 5p. A conservative trigger would be an end-of-day close through the resistance line near 2.8p. Momentum indicators have stayed above the neutral 50 since mid-December and there have been three RSI 50 rebounds this month — bullish signs for a run toward January resistance if we hold above the 2p area.
Ascent: Ascent is trading above a rising 50-day moving average, which is constructive ahead of an important arbitration announcement. Market drag has kept the stock subdued, but the setup keeps the top of the range and the channel near 0.66p as a possible target by month-end. Maintain support at the 50-day line near 0.38p.
CleanTech Lithium: Finally cleared a key target at 14.5p. While above that level the next reference is the November 2024 zone near 21p. If momentum holds, that target could arrive by the end of the month.
Emerson: A largely overlooked name but one to watch. Emerson sits in a rising channel from last year with upside toward 3p by the end of March if the uptrend continues. Keep an eye on support at last month’s resistance near 2.66p.
Eco (Atlantic): One of the strongest performers since December, Eco hit an interim target at 60p today, which is the top of its rising channel. If the rally continues the upper parallel of the channel points toward the low 80s, potentially as soon as the end of next month. On the downside, hold above today’s low at 55p on an end-of-day close to keep the bull case alive.
Rainbow Rare Earths: Recently championed and now showing market recognition. The short-term target is 31p by month-end while keeping above support at 25p. Multiple RSI 50 rebounds since mid-February back this constructive case.
Westmount: Has broken through a rising 50-day line; the channel from last summer points to a top around 10p. Target timing could be end of April or end of May, while maintaining support around 4.75p on end-of-day closes.
Zenith: Arbitration news remains the driver. After the break above 3.12p, the initial target of 5p is playing out and the next target is 7p by the end of the month. The 200-day line at roughly 5.66p is the current hurdle; an end-of-day close above that would increase the odds of reaching 7p. If you want to dream bigger, the bottom of the July gap at 9p becomes a stretch target beyond 7p.
How to trade these setups
- Use clear triggers — end-of-day closes through the levels mentioned above make for cleaner entry signals.
- Watch moving averages — the 50-day and 200-day lines are acting as meaningful support and resistance across indices and stocks.
- Respect RSI — a failure or rebound at the 50 level is a practical early signal of momentum change.
- Manage risk — small-caps can gap substantially; set stop levels and size positions accordingly.
Final thoughts
The broader market is in a state of flux: a few indices risk dropping back to major moving averages while crypto and commodities sit within defined ranges. Several small-cap names offer clear technical paths higher, but they need to hold support and produce clean breakout closes to confirm the next leg up.
Keep position sizes prudent, use end-of-day closes for confirmation where possible and let the charts guide the way.
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.
