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, Energy Green Transition, First Class Metals, Great Western, Hydrogen Utopia, IQE, Intuitive Investments, Moonpig, Sovereign Metals, Upland, Zenith.
Charts are starting to look a little spring-like. A handful of indices and cryptos have pushed back above key moving averages, while some commodities and small-cap stocks remain at important crossroads.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below, I run through the technical picture across major markets—FTSE 100, DAX, Dow, Bitcoin, Ethereum, gold and WTI—then look at a selection of small-cap and green transition names that are showing actionable chart set-ups.
Macro and index roundup
FTSE 100
The FTSE has managed to clear the 50-day moving average and the momentum indicator (RSI) has swung back above neutral 50. That gives a more convincing tone than the earlier, short-lived break on 10 March.
- 50-day around 10375
- Near resistance 10630 (recently seen on 5 March)
- Downside floor channel 10160 — keep that in view while price stays above the 50-day
DAX
Series of blue candles despite low absolute levels is constructive. The DAX cleared recent resistance near 23,800 and is now eyeing the 200-day and rising 50-day levels.
- Initial target 24,100 (200-day)
- Second target 24,600 (near 50-day)
- RSI still below 50 (45) — a note of caution but price action looks positive
Dow
The Dow remains a bit soggy. It tested the 200-day line (around 46,500) and has bounced above it, but momentum needs to improve before pushing higher.
- Immediate resistance 50-day at ~48,900
- If RSI fails to climb above 50 there is still a risk of another test of the 200-day line
Cryptocurrencies
Bitcoin
Bitcoin has been one of the leaders recently and cleared its 50-day moving average at ~70,500. The top of the falling trend channel sits near 77,000 and could be an end-of-month target if the current uptrend holds.
There is an uptrend line in the RSI window that has helped guide this rise, but historically time spent above the 50-day has been temporary. Treat any rally with healthy scepticism until sustained follow-through arrives.
Ethereum
Very similar technical set-up to Bitcoin. The 50-day sits lower (around 21102 on the chart used) and the channel top is near 2,675—an achievable target by month end if momentum continues. RSI is a touch more extended than Bitcoin but not at extreme overbought levels.
Commodities
Gold
Gold has been disappointing to those looking for fresh rallies. It recently touched the 50-day line and remains vulnerable while RSI is below neutral 50.
- If price closes back below the 4,985 level the next downside target is the October channel floor near 4,740.
- On the upside, the main resistance comes from the November 2024 line around 5,340—the top of the rising channel.
WTI crude oil
Probably the most interesting market at the moment. Oil retested the $100 area and is trading in the upper $90s to low $90s—the range for now. For bears to push prices materially lower, geopolitical risk (notably Iran) would have to ease; otherwise a band of upper $80s to mid $90s looks plausible.
Small – Caps
Several names in the energy green transition and smaller mining/technology names are showing clear technical cues. Below are the setups I’m watching, with levels and timeframes where relevant.
- European Green Transition: Company raised a sizeable £7.5m recently against a market cap of £10.5m. Stock broke out of a falling channel and above both the 50 and 200-day lines around 6.4p. Near-term target 11p by end of next month while funding covers the short term.
- First Class Metals: Appears to have pulled a bear-trap gap reversal. Held above 1.5p; initial target 2p with a follow-up to 3p by end of next month. Key support is the 50-day 1.62p.
- Great Western Mining: Rising from December lows, RSI pushed through 50 and the 50-day has turned up. Expect 2.5–2.6p by end of next month provided the floor around 1.4p holds.
- Hydrogen Utopia: Market makers appear less bearish. Broke above the 50-day (around 2.75p). Targets around 4p–4.5p by the end of next month, supported by an uptrend in RSI.
- IQE: Shares hit two targets recently; new support formed above 15p and there are early signs of a breakout above 25p. Staying above the 50 would keep the bullish case intact; next near-term target 30p.
- Intuitive Investments: Breaking to new highs and trading in a rising channel from November. Multiple rebounds in RSI above 50 suggest strength. A move toward £1.90–£2.00 is plausible by the end of next month while price remains above 1.58p broken resistance.
- Moonpig: Recently broke through 222p resistance and is targeting 246p. Given the sideways chart since July, this would be a punchy breakout—likely reliant on news as much as charts.
- Sovereign Metals: Good corporate news and a significantly upgraded MRE, yet the market only moved 7%. Chart looks constructive: target in the upper 50s (57–58p) by end of next month while remaining above the 50-day (39p).
- Upland: Resistance sits around 3–3.25p. An end-of-day close above that could open the top of the channel toward 4.9p by end of next month. Both 50 and 200-day lines are rising in parallel—bullish.
- Zenith (your commentator’s favourite): Third target hit at 6.75p. Next target 11p by the end of this month, with a best-case fill of the July gap at 14.75p by the end of next month. Key near-term support to hold is 6.75p.
What to watch and how to trade this environment
Focus on the intersection of price action and momentum. When an index or stock clears a key moving average and RSI climbs above 50, the odds favour further upside—but history shows many rallies are temporary without sustained breadth or follow-through.
Practical rules to keep in mind:
- Respect the 50-day and 200-day lines—they’re guiding current risk/reward for many names.
- Watch RSI around 50—a move above 50 confirms momentum; failure to hold 50 is a sign to tighten stops.
- Use clear levels for entries and exits—support and resistance from recent highs and channel floors make tidy stop-loss and target points.
- Mind geopolitical risk in commodities—oil is especially sensitive to headlines and can change ranges quickly.
Markets are looking more constructive in equities and crypto than they were a few weeks ago, but selective, level-based trading remains essential. I’ll be watching whether the current pushes above moving averages stick or turn out to be short-lived—those two outcomes require very different positioning.
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.
