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, Altona, ASA, Blencowe, Cindrigo, CleanTech, Cadence, Delta Gold, Emmerson, ECR Minerals, Georgina, Guardian Metals, Hardide, MediaZest, N4 Pharma, Sunrise, Strategic, Vault, Xtract, WeCap.
Markets finished the week with a defensive tone. Equity indices, commodities and crypto all reacted to the same headlines, and a few charts that had been flirting with resistance either paused or rolled over.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below is a concise technical read on the major indices, crypto, gold and a handpicked list of small caps that look interesting from a charting perspective.
Macro snapshot:
FTSE 100
The FTSE was sitting around 10,800 going into the weekend. We didn’t manage to re-test the psychological 11,000 level or the top of the rising trend channel that had been in place since late October. Key levels to watch:
- Immediate rugpull/old target: 10,640
- Previous resistance: 10,760
- If we settle down, a renewed push toward 11,000 remains the structural target.
DAX
The DAX has been oscillating between its 50-day moving average and the recent highs around 25,300–25,400. Dips to the 50-day have been buying opportunities since early December, so look for support around the 24,800 area. RSI has been hugging or above neutral 50, which helps the recovery case if a pullback appears.
Dow
The large US index has been trading either side of its 50-day. If the market drifts below that level (roughly 49,000 on these charts) the next meaningful technical line is the 200-day, near 47,900–48,000. Widening the channel to include the 200-day makes sense given recent price action; a fall to that area would be a significant test but not necessarily the end of the bullish case.
Crypto:
Bitcoin
Bitcoin remained in a fairly tight area. The intraweek dip touched about 63,000 but the broader range is still roughly 65,000–72,000. The RSI needs to reclaim neutral 50 to suggest a fresh leg higher. A worst-case daily close below 65,000 could open a move back toward the channel floor near 52,000, a significant retest of last summer’s support.
Ethereum
Ethereum’s range remains roughly 1,900–2,150. We saw a small dip under 1,900 but the RSI bounce gives scope for dips toward 1,900 to act as buying opportunities for a push back to 2,150.
Commodities: safe havens and energy
Gold
Geopolitical tensions kept gold on traders’ radar. Price closed just above a recent target (around 5,260 on these charts). The October peak near 5,595 is the next structural upside and, if things escalate, the upper channel target near 5,780 could come into play. Near-term support is around 5,160.
Crude oil
Oil has enjoyed a turnaround since January, breaking the falling channel top at about $69 and trading near $73 in spread bets. Both the 50- and 200-day lines are rising in parallel, hinting at a golden cross in progress. Technical upside sits toward the old June peak around $77 while we remain above the channel top.
Small-cap picks and technical roadmaps
Below is a compact run-through of a selection of small caps I’ve been watching. For each name I note the recent trigger, upside targets and near-term support or caveats.
Stocks with clear breakouts or momentum
- Altona — Gap through the 50-day on 9 January started the rally. Targets: 1.9p, then 2.7p, and 3.8–5p above that. Downside: keep an eye on the gap at 3.3p.
- ASA International — Broke recent resistance at 231p. Looking for 300p soon; liquidity appears thin, so trade size and timing matter.
- Blencowe — Finally cleared the long congestion zone, trading above 12p. Next leg could push toward the rising channel upper parallel (17p) as flows normalise.
- Cindrigo — Broke the 50-day line and a recent neckline at 7.1p. Targeting the 200-day (11p) by month end, best case to 14p.
- CleanTech — Cleared resistance at 8p and the 50-day now supports the move. Targets: 15p and potential gap fill near 16p.
- Cadence — Rising trend channel intact. While above 4p, downside risk limited; upside could reach 7–8p (subject to any fundraises).
Recovery candidates and speculative opportunities
- Emmerson — Disappointing previously but the breakout points to the top of the rising channel near 3.4p as a near-term upside target while above recent broken resistance (2.66p).
- ECR Minerals — Weekly close on the 50-day with a positive RSI trend. Targets around 4p if bullish momentum continues; keep > 2.6p ideally.
- Georgina — Seeing up-days and a 50 RSI rebound; has moved above the falling 200-day line. Eyeing 10p as a reclaimed level.
- Guardian Metals — Exceeded projection near 273p and looks mapped for further near-term upside to 308p.
- Delta Gold — Hit the top of the lilac trend channel at 55p. Above that, the next projection sits near 72p; keep an end-of-day close above 50p.
Momentum plays with near-term timing
- Hardide — Running strongly; recent moves have already cleared initial targets. Next projection around 53p if we stay above the 35p support.
- Mediazest — Broke the range above 0.12p. The rising channel points to 0.16p as a first meaningful target.
- N4 Pharma (name changing) — Broke resistance at 0.52p, golden cross developing. Targets: 0.9–1.0p by late April if momentum holds.
- Sunrise Resources — Big intraday jump; top of range near 0.4p with scope to 0.6p while remaining above the 50-day.
- Strategic Minerals — New tin zone news helping sentiment. Targets: 3.6p then 4.12p by month end if buyers stay engaged.
- Vault Ventures — Clean break of the 200-day moving average at 1.56p. Upside to 2.8p possible into next month.
- Xtract Resources — Multiple RSI 50 rebounds. Minimum upside seen at 1.3–1.4p; broader resistance around 1.9p from earlier 2023 action.
- WeCap — Notable US-listed move recently; the local market was quieter. Chart shows bullish divergence and an RSI uptrend. A move back above 0.9p could aim for the 50-day near 1.44p, but expectations should be tempered given the share’s recent behaviour.
Technical themes to keep in mind
- RSI 50 rebounds have been reliable short-term signals across many names. When the RSI holds above 50, dips tend to attract buyers.
- 50/200 day moving average interactions matter. Breaks above the 50-day and moves toward a golden cross can catalyse momentum, while failure to hold the 50-day often leads to tests of the 200-day.
- Gaps through the 50-day have been the starting point for several rallies this year. Treat gaps as support until proven otherwise.
- Fundraises and liquidity are real constraints on small caps. Targets assume no dilutive events; fundraises can derail momentum quickly.
Risk management and practical pointers
Trade size matters on these microcaps. If you’re trading names with thin liquidity, tighten position sizing and set clear stop levels. For indices and commodities, stick to confirmed closes beneath key moving averages before accepting a bearish view.
- Use the 50-day as a quick scan: is price above or below? That tells you whether the short-term bias is still constructive.
- Respect major support levels listed above — they’re where buyers have historically stepped in.
- Factor in geopolitical headlines. If volatility spikes, allow for wider intraday ranges and avoid chasing entries.
Final thoughts
We’ve got a market prone to short-term headline moves but with a number of technicals still favouring the bulls on a recovery basis. Indices need to hold key moving averages if the constructive view is to remain intact. In the small-cap space, several charts have broken higher and look primed for the next leg, but always watch for fundraises, illiquidity and sudden momentum shifts.
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.
