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, WTI Crude Oil, Bezant, Celebrus, Goldplat, Hardide, Insig AI, Kendrick, Mercantile Ports, Physiomics, Sovereign Metals, Scancell, Upland, Xtract, Zotefoams.
The broad picture remains constructive for equities, much more mixed for crypto, and increasingly tired for parts of the commodity space. A lot of the major index charts still look as though they want higher levels into the end of next month, while Bitcoin, Ethereum, gold and oil are all flashing signs of hesitation or outright weakness.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
On the stock side, there is still no shortage of lively small-cap setups. Some are already in motion, some are trying to break out, and a few of the more obscure names are beginning to look interesting precisely because the charts are improving before the crowd has fully noticed.
Major indices still point higher
FTSE 100
The FTSE 100 is trading around the initial May resistance near 10,460, effectively straddling that level. The key technical backdrop remains supportive. The 50-day moving average is rising, and the market has already broken the April resistance line at roughly 10,330.
As long as the index holds above that support combination, the path of least resistance still looks upward, with targets at:
- 10,600
- 10,700 by the end of next month
In a stronger scenario, the FTSE could even push towards the top of the rising trend channel in place since October, which points as high as 10,850.
The main near-term downside risk would be a slide below the 50-day line at around 10,340. If that gives way, attention shifts to the floor of the channel from late last year, around 10,225 to 10,260.
DAX
The DAX has been one of the cleaner trending charts recently. It is moving within a rising trend channel from March, and that is reinforced by a resistance line projection from this time last year which points towards 26,200 by the end of next month.
The market remains constructive while above the broken January resistance around 25,100. If that support holds, the bias remains for further gains.
The bigger technical point here is the likely arrival of a golden cross between the 50-day and 200-day moving averages, potentially within the next week or two. That phase of the cycle is often the strongest, so the DAX may still have room to surprise on the upside.
Worst case, a dip towards the 200-day moving average at 24,100 could come into play, but ideally the market stays north of 25,000.
Dow Jones
The Dow is trying to settle into life above the psychologically important 50,000 level. Even with a disappointing previous session, it has so far managed to hold that territory.
The immediate battleground is the old February resistance around 50,500, while the floor of the current channel comes in just under 50,000. As long as the Dow remains above 50,000, there is still scope for a move towards the November resistance line projection at 53,000 by the end of next month.
That is a punchy call, but it is backed by a punchy chart:
- RSI has stayed above and rebounded from the neutral 50 area
- Both the 50-day and 200-day moving averages are rising
- The market has spent a prolonged period consolidating above a rising 50-day line
That is generally not the behaviour of a market preparing for a major collapse.
Crypto remains under pressure
Bitcoin
Bitcoin has been dull, and for crypto that is often a problem in itself. The chart has failed at the 200-day moving average around 80,100, and price is now hovering around a rising 50-day moving average near 77,160.
The trouble is what sits beneath. If Bitcoin loses that 50-day support, there is a real risk of a move towards the channel floor at 69,000 by the end of next month.
There may still be further attempts to break the 200-day line, but the market has not been properly above that average since November, which is not a flattering technical backdrop. Momentum is also uninspiring, with two RSI failures below 50 and the indicator sitting around 42.
For now, Bitcoin looks more vulnerable than exciting.
Ethereum
If Bitcoin looks weak, Ethereum looks weaker. The chart has not only failed at the 50-day moving average, it is also struggling around the floor of the rising trend channel from February, roughly 2,070.
If that February channel support cannot be held, support in the 1,900 to 2,000 zone could come into play next month.
On the upside, the broad limit is seen around 2,260 and the 50-day moving average, though the more realistic cap may simply be 2,150, given how often the market has failed there recently.
Ethereum is still in repair mode rather than breakout mode.
Gold and oil both look tired
Gold
Gold is another market that looks a bit puffed out. The price has failed at the October line which should really have acted as the lower boundary of the range, and that weakness is now becoming more visible.
The 50-day moving average at 4,639 has capped price action for the last two months and still looks like the ceiling. If the market continues to soften, the next obvious destination is the 200-day moving average at 4,389.
From a tactical point of view, that 200-day line is probably the highest level worth paying if you are trying to buy gold on weakness. Right now, chasing it higher does not look attractive.
WTI crude oil
Crude oil has had the stuffing knocked out of its rally by the prospect of peace. The first warning was the failure at the April resistance line around 103.80, and that was followed by a gap down at the start of the week.
With price below the 50-day moving average at 97.85, the expectation is for a retest of last month’s support towards the $81 area.
The momentum picture is weak too, with two RSI failures below 50. Whether one agrees with the geopolitical read or not, the oil chart is effectively signalling expectations of some kind of settlement involving the US and Iran, and perhaps Israel as well.
Small-cap stock charts to watch
Bezant Resources: Bezant is looking better than it has for some time. The shares have broken recent resistance around 0.09p, and above that the chart points to the top of the range and channel at 0.17p by the end of next month. The supporting feature here is momentum. There have been two RSI rebounds from the 50 area, which tends to be a positive sign in a recovering chart.
Celebrus Technologies: Celebrus is one of those stocks that very few people seem to be talking about, which is partly what makes the chart interesting. It has broken recent resistance, April resistance and the 50-day moving average at 94p. Above that, the top of the channel points to 121p, potentially as soon as the end of next month. It is an ambitious target, but the move has conviction behind it. Stocks do not normally start moving like this for no reason at all.
Goldplat: Goldplat continues to respect a rising trend channel that has been in place for quite some time. The immediate target is 20p by the end of next month, especially while the shares remain above broken resistance at 16p. The implication is that there could be more beyond 20p, but first things first. The setup remains constructive.
Hardide: Hardide has been a brilliant fundamental story and a strong technical winner as well. The shares have pushed through the top of the previous rising trend channel at 55p, and that opens the door to a steeper ascent from the December trend line. The working target is now 75p by the end of next month, provided the stock stays above 55p.
Insig AI: Insig AI has its followers because of the AI angle, but the chart is doing enough on its own to deserve attention. The shares bounced from the floor of a gap around 14.25p, and they are rising alongside a rising 50-day moving average. That suggests a minimum upside objective over the next two to three weeks of 20p plus, which would bring the shares up towards the 200-day moving average.
Kendrick Resources: Kendrick continues to look like one of the stories of the year. It has clearly captured the market’s imagination, and the chart remains strong. The shares have been testing a third or fourth target around 8.6p. If that area gives way cleanly, the next target becomes 12p plus by the end of next month. Ideally, the stock holds above 8p to 8.25p while attempting that move.
Mercantile Ports: Mercantile Ports also appears to be recovering. The shares are back above the previous target around 1.1p, and that improves the outlook. Above this level, the chart points to 2p plus as the next swing target. 3p as the best-case retest by the end of next month. The recovery is still in progress, but the technical picture is notably better.
Physiomics: Physiomics, helped by the announcement of £345,000 in the kitty, is moving within a rising trend channel that remains intact. The target from that structure is an admittedly obscure 0.83p, potentially by the end of next month, although on current momentum it may get there sooner. If it does, that would open the way for a new objective. The key support area is around 0.65p and the floor of the latest gap.
Sovereign Metals: Sovereign Metals has been one of the more frustrating names. The company upgraded the quality of what it has in the ground, but the market response has been underwhelming. Technically, the priority is to see the shares reclaim the 50-day moving average at 37p. If that happens, a move back into the 40s by the end of next month becomes more realistic. At the moment this is a slower-moving setup than many would have hoped.
Scancell Holdings: Scancell has bounced from 20p and is now pointing towards 30p by the end of next month, ideally sooner if the current pace continues. This is simply a chart that looks very good indeed. The rebound has shape, momentum and follow-through.
Upland Resources: Upland remains a firm market favourite. The shares are having another go at the December resistance line around 3.1p. If that finally breaks, the target remains 4.6p by the end of next month, especially while the shares hold above the rising 50-day moving average and continue to deliver extended RSI 50 rebounds. The chart increasingly suggests that the stock may finally be on its way.
Xtract Resources: Xtract is also looking better, perhaps helped by some broader Colin Bird enthusiasm following the success seen elsewhere. The chart has a resistance line to clear at around 0.95p. Above that, the target becomes 1.4p by the end of next month. The support structure above a rising 200-day moving average is strong, and price action has been too resilient to even test support properly. That is usually a sign of underlying demand.
Zotefoams: Zotefoams is not normally the first name that comes to mind for excitement, but the chart is far from boring. It appears to be forming a bull flag around the 200-day moving average at 401p. The target from that setup is 485p by the end of next month. That combination often marks the strongest phase of a cycle, so Zotefoams may have more in it than its reputation suggests.
Final chart take
The main indices still look healthier than the headlines might imply. The FTSE 100, DAX and Dow all retain upside potential as long as key moving averages and breakout levels keep holding.
Crypto is a different story. Bitcoin and Ethereum both look vulnerable, with repeated failures around major technical levels and weak RSI behaviour. Gold is not doing much to inspire confidence either, while oil has rolled over sharply and is now reflecting a softer geopolitical premium.
Among individual shares, there is still plenty to work with. Kendrick, Hardide, Upland, Scancell, Xtract and Zotefoams all stand out for different reasons, while Bezant, Celebrus, Goldplat and Physiomics also offer constructive setups if the market remains cooperative.
For now, the charts still reward selectivity. The strongest opportunities are where price is already respecting rising moving averages, rebounding from RSI 50, and breaking through established resistance rather than merely hoping to.
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.
