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, Ajax, Delta Gold, Helium One, Harena, Kendrick, NARF, Petro Matad, Vaultz, and Zenith.
Markets have softened across the board. Several indices have broken short-term support and the move lower has pushed some momentum indicators into neutral or oversold territory. That means risk is skewed to the downside in the near term, but there are clear levels to watch where a bounce becomes more likely.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below are the practical levels, what they mean, and a few small-cap setups that deserve attention.
FTSE 100
The FTSE has pulled back from the hoped-for near-11,000 area and is now trading below the February resistance at 10,480 on an end-of-day close basis. We’ve also broken the floor of the rising trend channel.
Key technical points:
- Immediate resistance: 10,480 (February resistance)
- Conservative support: 50-day moving average at 10,294
- RSI: Fallen below neutral 50 to 47 — first time since early December
Strategy: while below 10,480 the risk is lower. A safe place to consider buying is near the 50-day moving average, where limit orders have historically worked well. If FTSE closes back through 10,480 that opens a tilt back toward 10,650.
DAX
The DAX has gapped down through its 50-day and then the 200-day moving average (24,100), which made for a painful decline. RSI is flirting with oversold levels near 30, so there may be a short-term overshoot to the downside.
- Current floor to reclaim: just above 24,000 (rising trend channel floor)
- Minor target if reclaimed: the 200-day at 24,200
- Recent context: the gap-fill from January acted as a meaningful sell signal
Watch for a close above the channel floor (24,000) to clear the path to the 200-day moving average. Until then, expect choppiness and potential retests of the oversold area.
Dow Jones
The Dow has hit the floor of its rising trend channel and looks vulnerable. There was hope for a bounce from the 50-day toward the 49,000 area, but the market is flirting with deeper tests.
- Near support (channel floor): 47,600
- Intermediate target if things improve: 49,500
- Worse case: 200-day moving average near 46,200
While still inside the rising channel, bulls have a chance. A break below the channel would increase the probability of a move down to the 200-day line — the first meaningful retest since last June.
Cryptocurrencies — Bitcoin and Ethereum
Cryptos are behaving a little oddly: reaction to geopolitical news was muted and Bitcoin has shown signs of a mini recovery.
Bitcoin
- Breakout: Cleared the falling channel around 68,000
- Up target: 200-day moving average near 76,000
- Downside risk: floor of the channel around 62,000
- RSI: pushing above neutral 50 — constructive for further upside
Second-time breakout looks more credible than the earlier false move. If buyers stay interested, the run to the 200-day is a reasonable near-term objective.
Ethereum
- Mini channel resistance: 2,070
- Near target: 50-day moving average at 2,377
- Key support: 1,900 — falling below this would undermine the intermediate recovery thesis
If Ethereum breeches the mini channel decisively, a catch-up move toward the 50-day is likely. Keep the 1,900 level as the danger line.
Gold
Gold’s action is a bit counterintuitive. Instead of retesting the January peak (5,595), it made a lower high and returned to the end-2024 channel.
- Top of current channel: 5,280
- 50-day support: 4,846
- RSI: has bounced above neutral 50 — constructive
As long as gold remains above the 50-day line, a push toward 5,280 is plausible. The 50-day is again a good place to consider limit orders for anyone looking to participate.
Crude Oil
Oil is the standout market at the moment. Price has hit the triangle top around $77 and is attempting to push higher.
- Immediate level: $77
- Next target: $84 (two-year resistance)
- Key mid-range: above $72 suggests strength
- Technical note: 50 and 200-day lines are approaching a golden cross — run-up to that cross often marks a strong cycle phase
Despite the geopolitical backdrop, oil remains relatively contained for now. A sustained move above $77 opens room toward the multi-month resistance at $84.
Selected small caps — actionable setups
Small caps continue to offer the most actionable upside if momentum returns. Here are concise trade ideas with clear levels to watch.
Ajax
- Recent spike toward 9p after newsflow
- Broke above the 50-day (7.6p)
- Near-term target: 13p by end of next month
- Conservative trigger: wait for an end-of-day close above 9.25p
Delta Gold
- Bull run paused — regrouping around 50p (channel floor)
- Top of channel target: 80p
- Keep >50p as supportive for the bullish case
Deltic
- Resistance broken at ~3.75p
- Targets: 5.5–5.75p (near the 200-day)
- Maintain bullish case while > 4.5p
Helium One
- Bounced above the 50-day moving average — typical continuation signal
- Target up to 0.80p and the top of the rising channel from August
- End-of-day close back below the 50-day would delay the upside plan
Harena Rare Earths
- Breakout past legacy resistance at 3p
- Target: retest old resistance near 5p (could come faster than expected)
- Keep the breakout level as support — constructive above 3p
Kendrick Resources
- Looking for a leg above 2p
- Near resistance: 2.8p; best-case 4.2p by end of next month
- Hold 2p to keep the bullish narrative intact
NARF
- Had a bullish divergence in RSI and an established uptrend line
- Threshold to watch: staying above the 200-day (0.5p) keeps upside prospects open
- Near target: 0.67p
Petro Matad
- Trend-line break and RSI rebound above 50
- Target: 1.8p by the end of next month
- Keep the broken red December trend line (1.2p) as the new reference
Vaultz Capital
- Delicate rise inside a rising channel with support from the 50-day (2.37p)
- Target: 3.5p near the end of next month
Zenith Energy
- Requested ticker — slow but steady with a rising channel base
- Key trigger: end-of-day close above 3.6p to confirm the breakout
- Target: 5p by the end of next month if momentum continues
Practical checklist for the week
- Note major support/resistance levels and place limit orders at reliable moving average levels (50-day has been effective).
- Use RSI and channel floors as confirmations rather than sole entry signals.
- For small caps, wait for end-of-day closes above breakout levels to reduce false break risk.
- Manage risk: set stop levels under clear technical support so one bad gap doesn’t wipe the trade.
Bottom line
Indices are testing support after a recent pullback; some are oversold and ripe for a bounce, while others need to reclaim channel floors first. Bitcoin and Ethereum show constructive setups, gold is holding above its 50-day, and crude oil is the strongest cyclical story right now.
For small-cap traders, there are several actionable breakouts and continuation setups — just be disciplined about waiting for confirmations and using sensible stop placement.
I’ll be watching these levels closely and will update as the tape evolves.
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.
