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, Avacta, Acuity, Delta Gold, Goldstone, Orosur, Pulsar, Physiomics, Sovereign Metals, Tan Delta, Velocity Composites, Valereum, and Wishbone.
Markets remain a mixed bag this morning. A handful of indices are holding technical support, while cryptocurrencies have slipped back into a more bearish posture, and gold continues to run.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below, I go through the important levels, likely scenarios and a selection of small-cap names I’m watching closely.
Major indices
FTSE 100
The Footsie dodged a deeper sell-off for now. We briefly flirted with a lower zone around ~10,050 but have bounced and the RSI is still above the neutral 50 line, which supports the recovery.
Key levels to watch:
- Close above 10,200 would improve the odds of a move back up toward the top of the October rising channel, potentially as high as 10,500 over the coming month.
- If we fail to reclaim 10,200 there is the risk of a retest of the channel floor near 9,980.
- Worst case: a sharp pullback to the 50-day moving average around 9,838, a zone tested in December.
DAX
The DAX is sitting on the fence in terms of bullishness. There are a couple of unfilled downside gaps that tend to act as a magnet for price, and the RSI is sliding below 50 — both favouring a pullback.
Watch for:
- An end-of-day close back above the recent gap top (just under 25,000) to avoid a deeper retracement.
- Absent that, a likely test of the 50-day moving average at roughly 24,200, which could be a logical re-entry point for bulls aiming for a retest of 25,500 in February.
Cryptocurrencies
Cryptos have softened and slipped below their 50-day lines, which is a technical red flag.
Bitcoin
- Currently below the 50-day line around ~90,300.
- A bull-trap through 95,000 increases the chance of another test of the October uptrend (and a possible move back toward 80,000) if we close the day below 86,000.
Ethereum
- Trading on the April uptrend support near 2,960 — a logical dip-buy area for bulls.
- If it fails to hold, the next material support is November’s level at 2,622. The 50-day is near 3,085.
- RSI sits around 39, which keeps Ethereum firmly within a bearish regime until momentum improves.
Gold
Gold is charging to new highs faster than expected. A near-term target I’m watching is the July resistance projection at roughly 5,400, which the current pace could reach by the end of next month if the rally continues.
Key considerations:
- Primary support: the recent gap area above 4,700. Staying above that keeps the bullish case intact.
- Potential rug-pull low: 4,550–4,580 on a corrective move, but ideally we remain above 4,700 and push into the low 5,000s quickly.
Selected Small Caps and Mid Caps
Here are the names I’m focusing on today, with the levels that matter for targets and stops.
Avacta Group
- Bounced above the rising 200-day line — a bullish leading signal.
- As long as price holds above 51p, upside toward 69p is plausible.
- If we break back below the 50-day then the next downside sits near 40p.
Acuity RM Group
- Bear-trap gap reversal in play after positive contract news.
- Holding the top of the gap near 0.82p is constructive; target around 1.11p (top of the broadening triangle).
- Keep an eye on the rising 50-day as a stop — roughly 0.85p.
Delta Gold
- Strong start to January and we hit the initial 26p target.
- End-of-day closes above 26p would open a path to around 37p by the end of next month.
- Shorter-term stop: yesterday’s low near 22p (a 23p close was previously the stop-loss guide).
Goldstone Resources
- A meaningful funding RNS has improved sentiment and allowed the stock to overcome financing worries.
- Above the 0.74p trend-channel top this day, the next logical target is toward 1p by the end of next month.
- Support to hold: the December resistance-turned-support around 0.65p, with the 200-day nearer 0.58p if things weaken.
Orosur Mining
- Rising trend channel intact and looking exponential; target roughly 43p by the end of next month while above recent resistance near 32p.
Pulsar Helium
- Completely on fire — initial ambitious targets have been exceeded.
- Next resistance is the upper parallel of the August rising channel, around £1.15 and possibly reachable by month-end.
- Tighter stop levels suggested around 80p; a clean end-of-day close above 88p would support further gains.
Physiomics
- Finally showing life after a long base; gap through resistance near 0.28p and a touch of the 50-day at 0.32p.
- Next resistance on the way up: around 0.37–0.38p.
Sovereign Metals
- Exceeded the initial falling-channel target of 37p — a solid result.
- Next stage: aim for about 55p by the end of next month while staying above the prior target near 36p.
- Multiple RSI 50 rebounds and a sideways shuffle above the rising 50-day were reliable bullish signals ahead of today’s move.
Tan Delta Systems
- Drawing a rising trend channel here; recent highs near 55p look reachable while the 50-day around 33p holds.
Velocity Composites
- Broken through the 50-day moving average and close to the rising structure that could retest October resistance.
- Potential upside toward 26–28p by the end of next month while above the 50-day near 16p.
Valereum
- Decent deal news produced an intraday spike within a rising channel; a move toward 27p is a reasonable near-term target while we hold the floor and the 50-day near 12p.
Wishbone Gold
- Rebounded off the rising 200-day line; momentum suggests upside toward 100p by the end of this month while above the 50-day at 74p.
Final Thoughts
Technical reality right now is a simple one: risks remain for indices and cryptos until they can convincingly reclaim key moving averages and close above recent resistance. Gold is the standout, powering higher and demanding respect from any portfolio that needs inflation or risk-insulation exposure.
On small caps, the trade remains level-specific — use the moving averages and the channel boundaries mentioned above to manage risk. If price holds those support zones, the upside targets I’ve listed are logical next stops. If they fail, be ready to reduce exposure or re-price your stops accordingly.
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.
