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, Alkemy, Amigo, Cora, FDM, Galileo, Goldstone, Hemogenyx, Jangada, Marechale, Paypoint, Serval, Vaultz.
A handful of major indexes are testing channel tops, cryptocurrencies are attempting to stabilise after recent weakness, and several small caps are showing fresh momentum backed by rising moving averages and RSI rebounds. The tone remains slightly speculative, so treat the levels below as a roadmap rather than a guarantee.
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 FTSE is pressing the top of a rising trend channel that stretches back to February. The key line in the sand is 10,220, with an intraday high around 10,225. A confirmed end of day close above 10,220 would open the path toward roughly 10,500 by the end of next month.
On the downside, recent support has been around 10,100, and the broader floor of the October rising channel remains near 10,000. RSI sits above 60 and appears to be holding, which argues for a bounce so long as the market stays above that 10,000 floor.
DAX
Last week’s gap higher left support at the gap top, near 24,700, which was previously October resistance. Staying above that level keeps the bulls looking for the top of the April channel, around 25,600, a record high zone.
If sentiment sours, the 50-day moving average near 24,300 is the obvious downside pivot to watch.
Dow
The Dow has eased off the top of its channel around the symbolic 50,000 mark. Near-term support sits above 49,000, and a sustained push through 50,000 would suggest a run toward 52,000 by the end of next month.
For more conservative entries, a test of the 50-day line near 48,100 would be a lower-risk entry on a pullback.
Cryptocurrencies
Bitcoin
Bitcoin has produced a two-day bounce off the floor of the rising trend channel that began in October, which nominally sits near 86,000. A meaningful sign of strength would be an end of day close through the falling 50-day moving average, just below 90,000, which could clear the way toward about 94,000 (October resistance).
Downside risk is real. A close below the channel floor at 86,000 risks a move toward 80,000, which would be a sizeable setback compared with October highs around 126,000.
Ethereum
Ethereum briefly broke its April uptrend only to bounce back, a classic bear trap rebound. The next technical trigger is an end of day close through the 50-day moving average at about 3,061. If that happens, a follow-through to roughly 3,300–3,400 is a reasonable short-term target.
The downside trigger is a close back below the recent support around 2,950, which could reopen a retest of November support near 2,622.
Gold and commodities
Gold
Gold continues its strong run and is trading comfortably above the psychological five thousand dollar handle, around $5,200 in the short term. The projection from a late October resistance line sits near $5,680, a steep, parabolic move.
Above an intermediate target at $5,160, the technical trajectory points higher, though the pace is aggressive and driven by momentum rather than stable consolidation.
Small Caps
Several small cap names are showing clean setups: RSI rebounds above neutral 50, rises through 50-day lines, and bull flag or channel break patterns. Below are highlights with the key levels to watch and short term targets, generally framed for the end of next month.
- Alkemy: Smashed through the channel top and old target near £3.90, looking toward £5.00 with an RSI above 50 and positive consolidation.
- Amigo: Strong turnaround. Staying above recent support around 1.7–1.9p keeps a target near 3p plausible, following prior targets around 0.85p and 1.44p.
- Cora Gold: Gold exposure is helping, and a golden cross is forming. Minimum near 12p in the coming days, with a best case near 18p while above broken resistance at 9p.
- FDM Group: A tougher chart because the 200-day has acted as selling pressure. An end of day close through the 200-day near 163p could open a run toward 200p.
- Galileo Resources: Rising 50 and 200-day lines suggest upside. Staying above 1.1p points to a near-term target of 1.5–1.6p.
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Goldstone Resources: Constructing a bull flag. Third target near 1.6p, with the old October peak around 1.85p as the next level.
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Hemogenyx: Momentum name that moves quickly when it moves. Channel top sits just above £9.20, and a run to £13.00 is on the table if momentum continues.
- Jangada Mines: Consolidation around 1.4p. A retest of December resistance at 2.1p, perhaps up to 2.25p, while above the 50-day near 1.6p.
- Marechale Capital: Recovering inside a rising channel, with a near-term ceiling around 2.9p and an upper parallel near 3.75p if that level breaks.
- PayPoint: Not a usual pick but a clean chart. Break through recent resistance around £5.33 targets the top of the channel and gap fill near £6.50.
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Oscillate: Rising channel, broken resistance at 0.42p now support, with a conservative near-term target at 0.66p.
- Vaultz Capital: Stealth recovery continuing. RSI 50 rebounds and a hold above the 50-day near 2.37p suggest a path to around 3.4p.
Practical takeaways
- Watch confirmed closes: Many scenarios depend on end of day closes through moving averages or channel lines rather than intraday wicks.
- Respect the 50 and 200 day lines: On several names the 50-day has been a leading indicator on the upside, while the 200-day has acted as resistance in weaker cases.
- Manage risk: If a market closes back below its recent support level, treat that as a cue to limit exposure or tighten stops.
Markets are constructive overall but fragile. The path higher is clear in many charts, but confirmation via closes above key levels matters. More updates will follow as these setups evolve.
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.
