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, Active Energy, Audioboom, Avacta, Frontier, Iofina, Made Tech, Neo, Oracle Power, Silver Bullet, Sareum, Strategic Minerals, and Thor Explorations.
On the stock side, there is a mixed but interesting collection of setups ranging from classic turnaround patterns to breakout attempts and trend continuations. As ever, the key is not just spotting the pattern, but identifying the level that confirms it.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
FTSE 100: still capped by resistance
The FTSE 100 remains hemmed in by a resistance zone built around the 5 March peak at 10,636. That area has repeatedly capped recent rallies, so the market still needs a convincing end of day close above 10,650 before the next leg higher becomes credible.
If that happens, the obvious follow-through would be a retest of the late February peak. Until then, the market is effectively pinned beneath resistance and vulnerable to another drift lower.
On the downside, the first notable support is the 50-day moving average at 10,410. Beneath that sits the floor of the rising channel at around 10,335, which is the level bulls will want to defend if the index slips.
There is also an obvious macro overlay here. A clean break higher probably needs greater clarity around the Iran situation before the market has the confidence to push decisively through overhead supply.
DAX: a battle around the 50-day and 200-day lines
The DAX has become a story of moving averages, with price action clustered around the 50-day and 200-day lines near the 24,000 area.
The level to beat is 24,100 on an end of day closing basis. A close above there would open the way for a move towards 24,500, which marks the top of the second gap down from last month.
Support comes in around the latest upside gap at 23,400, a level that has already nearly done its job earlier in the week. With the RSI holding above 50 and rebounding, the benefit of the doubt still sits with the bulls for now.
The implication is straightforward:
- Above 24,100, the market can target 24,500
- Above 23,400, the recovery argument stays intact
Dow: trying to clear the top of the channel
The Dow is still in the process of properly breaking through the top of its rising channel. There was arguably a break already, but what matters now is whether the index can put some distance between itself and the nearby moving average support.
The 50-day moving average sits around 47,974, and as long as the market remains above that, the next upside reference is resistance from late February near the 49,800 to 50,000 area.
On any pullback, the preferred scenario is that the 200-day moving average and the top of the latest gap around 47,000 act as the floor.
So the structure here remains constructive, but the index still needs to show a cleaner break if it is going to challenge the 50,000 area in earnest.
Bitcoin: recovery signal, but not yet acceleration
Bitcoin continues to frustrate. The positive here is that it has already broken through the top of its falling trend channel, which usually points to a recovery phase. The less positive part is that the price has not yet followed through with much urgency.
The market is still working around 75,000 resistance. If that gives way, the next important area is around 79,000, which was previous support on the way down and may now act as resistance on the way back up.
Underneath, the picture has improved because:
- The 50-day moving average is rising towards 69,000
- The market has managed to avoid breaking the February uptrend line near 66,000
That keeps Bitcoin in potential recovery mode, but it still needs to convert the chart improvement into a proper move through overhead resistance.
Ethereum: not as strong as Bitcoin, but still trying
Ethereum is broadly echoing Bitcoin, although it is lagging. Unlike Bitcoin, it has not yet broken the top of its channel, so the recovery case is less advanced.
The first upside hurdle is 2,440. If that is cleared, the market can start looking towards the 200-day moving average around 2,880 to 2,893.
On the downside, the main risk is another test of the 50-day moving average around 2,107. Even so, the RSI remains supportive, with an uptrend line in place and the indicator around the 60 area. That suggests more upside attempts are likely, even if Ethereum first needs to shake out weaker hands with another retest of support.
Gold: trying to reclaim the 50-day average
Gold has been all about recovery towards the 50-day moving average. Price has been edging close to it over recent sessions, and the immediate task is to regain that level on a sustained basis.
The 50-day line is around 4,901, and the minimum upside objective from here is effectively a move towards that average and the top of the channel. Even if the market then slips back again, that remains the first obvious upside marker.
For support, the 4,600 zone looks the most relevant area in the near term.
Gold is also acting as a direct barometer of geopolitical tension, particularly around Iran. That makes the chart highly sensitive to headlines as well as to pure technical structure.
WTI crude: fear premium easing
Oil has started to reflect an easing of recent conflict fears. The key technical development is the break below the floor of the previous rising trend channel around $95.
That break shifts the expected trading range to $85 to $95, which points to a reduction in the geopolitical risk premium that had been priced in over the last six weeks or so.
The worst-case near-term scenario would be a test of the 50-day moving average at $83 before the market tries to head higher again.
So for now, oil looks less like a breakout market and more like a range market.
Stock charts to watch
Active Energy: a bear trap turnaround setup: Active Energy has been a possible turnaround story for a while, and the chart is still trying to deliver on that idea. The bullish angle comes from a combination of: A bounce from the bottom of an unfilled upside gap. Together, that suggests scope for a move towards the 0.10p to 0.105p area, even if the shares later pull back again. The setup remains valid while the price stays above roughly 0.07p, which is effectively where the gap floor sits.
Audioboom: blue candles and a possible fresh leg higher: The chart is supported by rising 50-day and 200-day moving averages, and the previous target was the top of a broadening triangle around 650 to 660p. The key level now is 660p on an end of day close basis. A proper break there would imply a fresh leg higher, initially towards 700p. Beyond that, there is the January peak near 800p, so a clean breakout could eventually bring the year highs back into play. Ideally, the shares stay on the right side of 600p.
Avacta: bear trap island reversal still doing the work: Avacta has been trying to push through the 75p level and is just about doing so. The background is favourable because the chart already produced a bear trap island reversal, which is one of the stronger reversal patterns when it works. Add in the rebound from a rising 50-day moving average, and there is a solid technical case for further upside. An end of day close above 75p would strengthen the argument for a move towards 91p, which is the top of the channel.
Frontier IP: slow burner with a constructive structure: Frontier is not the fastest-moving stock on the screen, but technically it is setting up well. The chart shows a mid-move consolidation above the 200-day moving average at 16p. That leaves room for a move towards the top of the broadening triangle at around 28p, possibly by the end of next month.There is also a wide rising trend channel dating back to 2022, with the top of that structure projecting as high as 40p. For now, the shorter-term focus remains the 28p area. This is one for the watch list if patience is part of the plan.
Iofina look to be on its way: Rising trend channel from back in 2022, in fact, the top of the channel heading for 40p. While above broken reset resistances at 28p.
Made Tech: contract win lights up the chart: Made Tech has reacted well to a chunky contract win, and the chart now looks as though it wants to continue towards the 50p level. The target could come into view as soon as the end of the month while the shares hold above the latest gap around 41p. That gap now becomes the obvious support reference.
Neo: V-shaped bounce improving the picture: Neo had already shown signs of turning around through an uptrend line in the RSI and a bounce in momentum. The price action has since developed into a V-shaped bounce, which often marks a sharp recovery phase. The next trigger is an end of day close through 0.70p. If that arrives, the stock has a good chance of filling the gap at around 0.85p, potentially by the end of the month. The supporting feature here is the RSI break back above 50, which improves the bullish case.
Oracle Power: back in business with news flow: Oracle Power has picked up on the back of fresh news from the Northern Zone, and the chart has responded in kind.The shares have moved through the 50-day moving average around 0.05p and also pushed above resistance around 0.06p. A confirmed close above that level would point to a retest of 0.1p, possibly by the end of the month. As with several speculative small caps, fundraising risk remains part of the equation, but technically this is one of the better-looking rebound setups in the pack.
Silver Bullet: gap-up recovery with 31p in view: Silver Bullet is trying to make progress after gapping up towards the 200-day moving average. The working target remains 31p by the end of next month, provided the stock stays above the 50-day moving average at 16p. That 16p area is the key support level keeping the recovery case alive.
Sareum: still trying to deliver the long-awaited upside: Sareum has been a long-running attempt to call a move higher, but the chart structure still supports the idea. There is a rising trend channel in place, and the target remains the top of the range and top of the channel towards 31p. For that target to stay credible, the shares need to remain above recent broken resistance at 19p.
Strategic Minerals: one of the strongest charts of the year: Strategic Minerals has been one of the standout performers, and the chart continues to justify that status. The shares have hit the top of the rising channel again near 6.2p. If there is an end of day close above 6.2p, the next upside projection becomes 9p by the end of next month. The key support area is recent broken resistance around 5.5p. Staying above that level keeps the bullish structure intact.
Thor Explorations: resistance block to clear: Thor Explorations is sitting beneath a notable resistance block around 81p. The preferred view remains bullish while the shares hold above the latest broken resistance at 75p. As long as that support holds, the chart still points towards the 90p zone. There are two sensible ways to approach it: Aggressive approach: stay constructive above 75p. Cautious approach: wait for an end of day close above 81p. If the bullish scenario fails in the short term, the floor of the channel near 67p becomes the deeper support area to monitor.
The common thread across the charts
The recurring theme is that many markets are close to important trigger points but have not quite committed. Indices are pressing against resistance, crypto is showing early signs of repair without full confirmation, gold is trying to reclaim trend support, and oil is shifting from fear-driven breakout mode into a broader range.
Among the individual stocks, the strongest setups tend to share one or more of the following features:
- End of day closes above well-defined resistance
- Support from rising 50-day or 200-day moving averages
- Gap support holding after news or reversals
- RSI breaks back above 50
- Bear trap or island reversal patterns
That is where the better risk-reward tends to sit. Not in guessing, but in waiting for the chart to prove the point.
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.
