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, Amigo, Alien Metals, Block Energy, ECR, Funding Circle, Goldstone, Guardian Metal, Kendrick, Neo Energy, Orosur, Pulsar, Strategic Minerals, Tungsten West, Tooru.
Gold continues to behave like the safe-haven star, and several smaller-cap miners and energy names are starting to break out on solid technical signals. Below I run through the key levels to watch and the realistic targets that matter for the next few weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The FTSE has twice touched the top of the rising trend channel formed since last October. The key line to clear is 10,230 on an end‑of‑day close—do that and a fresh leg higher toward 10,500 becomes plausible. Stay below 10,230 and the market risks a slide toward the floor of the October channel at roughly 10,025.
Momentum is respectable (RSI in the low 60s), so consolidation above 10,000 is still possible. If selling accelerates, the 50‑day moving average at about 9,850 could act as the next stopping point for bulls.
DAX
The DAX produced a classic bear‑trap reversal—gapping lower then gapping up—and found support at the old October resistance, now new support, above roughly 24,700. A logical retest target is January resistance near 25,500.
The RSI has rebounded (not quite through 50) and the index is holding above a rising 50‑day moving average. On balance there are more positives than negatives for the DAX right now.
Dow Jones
The Dow appears to be in a rising December trend channel. Clearance above about 48,700 opens the path to the psychologically important 50,000 zone. Best case would see the top of the channel nearer 52,000 by the end of next month, though that is ambitious and sensitive to political shocks.
If sentiment sours, the 50‑day moving average (around 48,100) is the likely near‑term destination for pullbacks.
Cryptocurrencies
Bitcoin
Technically this looks weak. Bitcoin failed at the 50‑day moving average and that 50‑day is rolling lower (approx 90,100), so expect at least a test of the October channel floor near 86,000. A worst case would send price back down toward the November floor around 80,000 by the end of next month.
The rounded RSI structure is a clear negative—an RSI failure well below neutral 50 combined with a falling 50‑day line makes the recent moves read like a bull trap through the 95,000 area.
Ethereum
Ethereum is struggling to hold the April uptrend line that acted as the floor of last year’s rising channel. It has slipped below the falling 50‑day and that crucial trend-line around 2,980. Below that level the next objective is about 2,622, with the RSI dead below 50. If the 200‑day also starts to fall, that would materially worsen the technical outlook.
Gold
Gold remains one of the standout performers. The recent surge cleared the November rising channel top and comfortably eclipsed the old peak near 4,794. The shorter target of 4,800 has already been achieved earlier than anticipated.
On the upside there is scope toward the July resistance projection—possibly as high as 5,400—though a nearer, more conservative objective is around 5,200. For the bullish case to remain intact gold needs to stay above the previous resistance at about 4,794. A breakdown under roughly 4,650 would shift the technicals back toward mid‑January resistance as the favoured downside target.
Small Caps
Several micro and small caps are registering convincing technical moves. Notes below summarise the technical set-ups, the triggers and the targets to watch in the coming weeks.
- Amigo — A strategic shift into more commodity-focused opportunities has electrified the chart. The initial short-term target was 0.086; the next possible target is near 1.40p. Momentum is strong and further upside could follow quickly.
- Alien Metals — Both the 50 and 200 day moving averages are rising. Having broken resistance around 0.14p, a first objective is 0.22p. A golden cross between the 50 and 200 day lines could arrive in the first week of next month, reinforcing the bullish case.
- Block Energy — Building a mid‑move consolidation that often precedes a push to the top of a broadening triangle. The target towards the triangle top is around 1.25p, and the 200‑day moving average 0.87p sits in the background as a key level.
- ECR Minerals — After a surprise fundraise the stock regained momentum. It closed above the initial target of 0.32p and now looks toward approximately 0.46p within the next month. RSI and moving averages are supportive.
- Funding Circle — The share price has already hit the target near 170p. The next objective is 190p, which corresponds with the upper parallel of the rising trend channel started in January last year.
- Goldstone Resources — Funding needs looked resolved and the initial 0.75p target has been met. Short-term upside toward 1p is possible, with a best-case path to around 1.6p by the end of March if momentum continues.
- Kendrick — Upgraded target after constructive price action and positive interview sentiment. The upper parallel of its rising trend channel sits near 0.67p, potentially achievable by late February into March while price stays above the September resistance at about 0.42p.
- Mycelx Technologies — A stock I like has already reached an initial target of 33p, with a second target of 50p by the end of next month while staying above the January resistance near 38p.
- Neo Energy — Cleared its early target and is trading above the 50‑day line. Having exceeded roughly 1.05, the next push could take it toward 1.36 by the end of next month.
- Orosur Mining — Chart setup points to targets in the 43–45p zone by the end of next month, with potential to exceed toward the 50p area as part of a wider trend channel. Support around 34p.
- Pulsar Helium — Pulled back from highs but the old target near 75p should now act as support. Expect a possible run toward approximately £1.15 by the end of next month if the base holds.
- Guardian Metal — Aiming for a top of channel near £2.00 while remaining above recent resistance of about 160p. Director buying and robust RSI make the case look credible.
- Strategic Minerals — Despite a fundraise the stock resumed the rally and now sits in a rising channel. Target near 2.4p by the end of next month seems realistic.
- Tungsten West — A dramatic vertical move has developed. Near-term target is around 20p and, for the more ambitious scenario, the upper parallel of the rising channel could head toward about 31p by the end of next month while price stays above the old peak near 16p.
- Tooru — Rebounded from a rising 200‑day line around 0.23p. While above that level the price could retest the top of the recent range near roughly 0.32p by the end of next month.
How to use these levels
- Respect trend channels — When a price approaches the top of a rising channel it can either break out or reverse sharply. Use end‑of‑day closes to confirm breakout validity.
- Watch the 50‑day/200‑day cross — Golden crosses validate medium-term rotatation into a sector; failures at the 50‑day can lead to quick re-tests of lower channel floors.
- Use RSI as confirmation — An RSI rebound through 50 supports bullish continuation; sustained RSI below 50 usually warns of further downside.
- Plan targets and stops — Have clear upside targets and stop levels. For many of the small caps above, a breach of short-term support levels cancels the bullish thesis and should trigger re-evaluation.
Bottom line
Indices are wedged at important resistance lines and can go either way depending on macro and political headlines. Crypto looks fragile; gold is the defensive outperformer. Several small-cap resource and energy names have clean technical setups and could be the next leaders if momentum continues. Keep an eye on the 50‑day and 200‑day dynamics, RSI behaviour, and end‑of‑day closes to separate genuine breakouts from traps.
More updates will refine these levels as price action evolves. Stay disciplined and let the charts dictate the plan.
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.
