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, Arc Minerals, CleanTech, Eden, Galantas, Mercantile, Oracle Power, Panther, Richmond Hill, Revolution Beauty, Rc365, Reabold, RC Fomax, Sealand, Sareum, ValiRx.
Markets have started the year with some clear technical footprints. Major indices are pushing higher, gold is in rude health, crypto has stabilised but fragile, and a clutch of small caps are showing tradable patterns — gaps, RSI rebounds and rising moving averages. Below I lay out the key levels, what to watch for and short, practical targets and downside warnings.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major Indices
FTSE 100
The FTSE cleared 10,000 and managed a neat test of the top of a long-standing channel from February. The immediate support to respect is the floor of the rising red channel from October around 9,960. An end-of-day close through 10,150 would open the door to a run toward 10,500 — a reasonable target for the coming month.
Bottom line: bullish while above 9,960; acceleration likely on a sustained close above 10,150.
DAX
After a prolonged range from May to December, the DAX has broken out and is holding above old October resistance near 24,700. The top of the rising trend channel from April sits around 25,800. Key technical support was the rising 50-day line and a successful RSI 50 rebound — arguably the best single signal in play right now.
Bottom line: higher while above the broken resistance zone; target 25,800 in the near term if momentum continues.
Dow
The Dow benefitted from recent geopolitical headlines and has hit the top of its February channel near 49,500. Projection from the July resistance line points to roughly 50,100, a sensible near-term goal while the index stays above recent broken resistance at 48,700. Note a string of RSI 50 rebounds since early December — a bullish pattern to keep on the radar.
Risk: a rug pull would target the 50-day line at about 47,600.
Cryptocurrencies
Bitcoin
Bitcoin has had a better start to the year than the tail end of last year. Price pushed up against November/December resistance around 94,000 before a pullback. The important moving average to watch is the 50-day at approximately 89,000. If that holds, targets of 95,000 and a best-case 106,000 are on the table.
Downside: a test of the October 2024 uptrend line near 85,000 would be the worst-case for now.
Ethereum
Ethereum is hovering near the psychological 3,000 mark. A rising 50-day sits around 3,160. Clear upside targets stretch toward the 200-day area 3,600 and the October resistance near 3,700, but staying above the 50-day is key. If that fails, the April uptrend line near 2,867 becomes the next structural support.
Gold and Commodities
Gold has been strong and remains so after a shallow wobble earlier in the week. A classic 50-day moving average rebound occurred near 4,203, and the market has reclaimed the floor of the channel at around 4,280. If current momentum holds, the top of that channel sits near 4,760 — a realistic target by the end of the month.
Observation: a dip to the 50-day was a rare pullback since August and felt like a deliberate shakeout — a useful entry for those who executed limit orders at the moving average.
Small Caps and Stocks to Watch
Several small caps are showing clear chart setups: gap fills, RSI 50 rebounds, rising 50 and 200-day lines and island reversal patterns. Below are the key names, technical signals and targets to watch.
- Arc Minerals — Triangle target reached above 0.60p. Gap fill to around 1.05 (share units) and resistance aligned with the 200-day. Keep an eye on whether the 6p floor holds after a recent 10% pullback.
- CleanTech — Strong start to the year with good RNS flow. Targeting 10p this month while staying above 7.5p. Watch for profit taking but the setup is intact.
- Eden — Bull flag breakout and a gap through the 200-day. A clean RNS supported the move. Short-term target 4.22p; maintain above the gap floor at 2.75p.
- Galantas Gold — A recent punchy call: rallied from sub-10p toward old resistance near 35p. Still looking for 35p while remaining above April resistance near 25p.
- Mercantile Ports — Bear trap island reversal after gaps. Above the 50-day at 0.49p, upside toward the 200-day at 0.93p and possibly 1.16p by the end of next month.
- Oracle Power — Consolidating but oriented to be a gold play. Break above October resistance near 0.04p could lead to a swift move to 0.07. Rising 50-day helps the case.
- Panther — Bounced off a rising 200-day (61p) and showing an RSI 50 rebound. Targeting the top of a falling channel near 89p. Signals point to a potential golden cross.
- Richmond Hill — First target of 2.3p hit. Next target near 3.12p by month end; unfilled gaps give further upside room.
- Revolution Beauty — Approaching first target at channel top 4.1p. Upper band sits near 5.1p by the end of next month while maintaining above November resistance (3.44p).
- RC365 — Consolidation above October resistance 1.6p. Triangle top near 3p by the end of next month if 50 and 200-day lines keep rising.
- Reabold Resources — Above 0.06, looking to hit the April 2020 triangle top near 0.09 this month. This would be a significant break from recent underperformance.
- RC Fomax — Approaching first target 14p after a gap-close buy signal. Next target 21p, with recent action consolidated above rising 50-day.
- Sealand — Revving for an upside move. Recent spike to 0.85p and a triangle target around 0.60p . Keep an eye on the 200-day level as support.
- Sareum — Consolidating above a rising 50-day and an RSI 50-plus rebound. Up 12% today; target 30p by month end while above the old gap top near 19p.
- ValiRx — Strong interest and multiple bounces off RSI 50. End-of-day close above the gap at 0.47p could propel the stock toward 0.75p by the end of the month. Watch the 200-day near 50p as the main barrier.
Key Technical Themes
- RSI 50 rebounds are proving particularly reliable across indices and several small caps.
- Rising 50 and 200-day moving averages in parallel (a golden-cross-like environment) underpin many bullish cases.
- Gaps and bear traps (island reversals) are presenting clear swing-trade opportunities, especially where gaps remain unfilled.
- Manage risk by watching the nearest moving average support or the floor of the relevant channel; they tell you when a setup has failed.
Markets are providing plenty of tradable setups right now. Keep position sizes sensible, respect the moving averages and RSI signals, and treat unfilled gaps as targets rather than promises. I’ll be watching how these levels hold and will update with fresh levels as price action develops.
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.
