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, Alba, Amaroq, CleanTech, Eden Research, GreenX, Great Southern, IQE, Litigation Capital, Orcadian, Pulsar, Reabold, Richmond Hill, Strategic Minerals.
Markets remain constructive across indices, commodities and a handful of small-cap stocks. A recurring theme this week: rebounds around the 50-day moving average and RSI bouncing through the 50 level are acting as useful leading indicators. That set-up is driving a number of aggressive, short-term targets — some conservative, some punchy. Below is a concise, chart-driven rundown with key levels, support zones and trade ideas.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Index overview
FTSE 100
The FTSE is sitting just below the top of a rising February trend channel. Short-term technicals are constructive thanks to a triple RSI 50 rebound in December.
- Immediate target: 10,180 (top of the current channel).
- Extended upside: 10,500 by the end of next month if momentum holds.
- Key support: nominally at or just below 10,000 — use this as a risk reference for any pullbacks.
DAX
After a long period of consolidation, the DAX is tracking toward the top of a rising channel that began in April.
- Target: 25,800 by the end of this month, while prices remain above the old October resistance at 24,700 (end-of-day close basis).
Dow
Momentum remains upward despite headline noise. Several RSI rebounds in December have acted as valid leading signals.
- Near-term: already close to the channel top around 49,700.
- Next upside projection: 50,300–50,400 by the end of this month (could be sooner).
Cryptocurrency
Bitcoin
Bitcoin is showing a clean bounce above a rising 50-day line and has recently respected RSI 50 — two bullish readouts.
- Initial target: 94,000.
- Stretch target: 106,000 by the end of next month if strength continues.
- Support if technicals fail: the October 2024 uptrend line around 86,000.
Ethereum
Ethereum is dancing around the 50-day line but currently above it, supported by a slow RSI rebound through 50.
- Upside target: 3,600 (200-day line) while staying above the 50-day at 3,035.
- Downside reference: the April uptrend line near 2,895 if a breakdown occurs.
Gold
Gold has re-entered a rising trend channel that began in October. Multiple RSI 50 rebounds since mid-November add weight to the bullish argument.
- Floor of the channel (nominal support): 4,320.
- Upside target: 4,800 (November 2024 resistance projection) by the end of next month.
- Trade note: consider limit orders near the 50-day line currently around 4,213 if looking to enter after a pullback.
Selected stock
These are short-term, chart-driven ideas across bulletin board names where technical setups offer clear risk/reward.
Alba
- Setup: bouncing around the 200-day line.
- Targets: initial 0.35p, potentially up to 0.44p if momentum continues.
- Key risk: finish below the 200-day (0.19p End Of Day) would weaken the case.
Amaroq
- Drivers: operational updates on gold production and positive sentiment.
- Target: upper parallel of the March resistance projection 150p.
- Technical positives: multiple RSI 50+ rebounds and support well above the 50-day line.
CleanTech
- Recent action: sharp start to 2026, briefly closing above 10p.
- Target: 14p by the end of this month following the breakout.
- Support: ideally stay above 8p (late June resistance turned support).
Eden Research
- Pattern: bear trap island reversal — gap down in September, double gap up in January.
- Target: 4.5p retesting May resistance by month-end while > gap floor (3.1p EOD).
GreenX Metals
- Fundamental catalyst: favourable Singapore court development; market reaction has been muted relative to the news.
- Target: upper parallel of the July rising channel 80p, more conservatively by the end of next month.
- Support to hold: old broken resistance 48p.
Great Southern
- Technical: U-shaped bull flag above the 200-day (3.05p).
- Target: channel top toward 6p by the end of next month if the 200-day starts to curl up.
IQE
- Setup: rebound within a falling channel but a decisive break above the 50-day (5.29p).
- Targets: first at the 200-day (8.2–8.3p), stretch to 12p if it holds above November resistance 6.22p.
Litigation Capital
- Pattern: broadening triangle base with bullish divergence (lower lows in price, higher RSI).
- Target: triangle top 16–17p by month-end while > 50-day (9.50p).
Orcadian
- Momentum: end-of-week close above the 50-day (13.8p).
- Targets: initial 17.12p, with upside to the upper parallel of the channel 35p by the end of next month if a deeper move materialises.
Pulsar
- Action: three bullish gaps since mid-December, latest gap even more impressive.
- Target: channel top 73p by month-end while staying above gap floor 54p.
Reabold
- Signal: bullish momentum and good news flow; second target cleared and now looking higher.
- Target: at least 0.017p by the end of this month, likely more depending on news continuation.
Richmond Hill
- Richmond Hill: recent gap through resistance around 1.3p, target achieved near 2.35p, next target 3.5p (end of month or next month conservatively).
Strategic Minerals
- Setup: rising bull flag breakout; 50-day and 200-day both rising sharply.
- Target: top of the channel 2.4p by the end of next month or sooner; attractive risk/reward given a nearby reference 1.35p.
Trading takeaways and practical rules
- RSI 50 rebounds matter — across both indices and small caps, an RSI bounce through 50 has been a useful leading indicator for short-term upside.
- Respect moving averages — the 50-day is acting as a dynamic support/resistance pivot; the 200-day remains the longer-term trend filter (stay above for bullish conviction).
- Use clear levels for risk — set stop references at the stated support lines (for indices and individual stocks) and consider limit orders near the 50-day on pullbacks.
- Be realistic on timelines — many targets are set for the end of this month or next month; some moves may occur sooner, some may take a little longer.
Markets are giving clear technical clues this week. Keep an eye on 50-day behaviour and RSI 50 rebounds — they are doing the heavy lifting for short-term signals. More updates tomorrow.
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.
