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, Clean Power, Deltic, Galantas, Harvest Minerals, Mendell, Rainbow, SkinBio, Mexican Tortilla, Union Jack, and United Oil & Gas.
Market snapshot — risk is rising, structure matters
Global markets have given back notable ground over the past week. The technical picture looks vulnerable across major indices and a few key commodities, while a handful of smaller-cap stocks are showing attractive chart setups. Geopolitical noise — notably tensions in Iran — means volatility can surprise to the upside or downside, so charts rather than headlines should set the plan.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Indices to watch
FTSE 100
The FTSE has been hit hard, losing nearly 6% over the last week and now hovering around the 50-day moving average at about 10,315. This moving average has acted as a recurring pivot since last autumn.
Key levels:
- Immediate resistance: 50-day moving average (10,315).
- Near-term support: 10,400 (initial) and then down to the 10,000 round number.
- Bear case: retest of the 9,920–10,030 area.
The RSI sits around 40, well below neutral and the weakest since November, which suggests downside momentum has picked up and any bounce will need to be decisive to change the tone.
DAX
The DAX has broken the rising trend channel that started in April and is trading below the psychological 24,000 mark. Old support around 22,900 (November lows) is now on the radar.
Resistance: the 200-day moving average at roughly 24,174 is capping upside attempts. A sustained move back above that level would be constructive; otherwise the path lower remains plausible.
Dow Jones
The Dow failed to sustain gains above the 55,000-ish area earlier and has lost both the November uptrend line and the 50-day moving average (49,100).
Favoured support: the 200-day moving average around 46,300. Until the Dow proves it can reclaim the 50-day, rallies are likely to be met with resistance.
Cryptocurrencies
Bitcoin
Bitcoin attempted a rally to the 50-day moving average (74,000) but failed to hold. The technical setup looks like a classic bull-trap — a push above 70,000 that quickly faded suggests sellers remain active.
Watch the recent support projection heading towards the 60,000 area. A break below that would open a fresh leg lower.
Ethereum
Ethereum also suffered from the bull-trap dynamic and is trading well below its 50-day line (~2,271). While resistance sits near the channel top at ~2,040, downside targets lie around 1,750 if the falling channel remains intact.
Commodities
Gold
Gold managed a breach of the top of its late-2024 channel but has disappointed since. The 50-day moving average (~4,858) remains an important support zone; historically it has provided intraday support for the metal.
RSI remains slightly bullish at around 51, so the bias is not yet decisively negative — but momentum is fragile.
Crude oil
Crude is the standout market this week. Price has sliced through earlier resistance levels near 77.70, spiked past 79 and cleared the July 2024 peak near 84.
Best-case upside sits toward 86.70 while prices remain above 79. With geopolitical risk elevated, this market is a key driver for oil-linked equities and inflation-sensitive sectors.
Small-cap stock ideas and chart setups
Several bulletin-board and AIM names are showing chart patterns worth noting. Below are the setups, the technical cues to watch and rough targets based on channel structure and moving averages. These are chart-focused observations, not company valuations or recommendations.
Clean Power Hydrogen:
- Chart: falling trend channel with the top near 8p. Key support is the 50 and 200-day moving averages around 5p.
- Upside case: a break above the channel top could see a move towards 13p within the next month. Staying above the mid-range moving averages keeps the bull case alive.
Deltic Energy
- Chart: potential rising trend channel base with resistance around 5.6p and main resistance near 7–7.4p. Friday’s support near 4.5p is a useful risk line.
- A clean hold above the lower channel and the 200-day line would favour a push to the upper targets over the coming weeks.
Galantas Gold
- One of the week’s better performers. The chart broke through resistance at 35p on Thursday and blasted past the next target of 42p. Best-case target near 72p by the end of the month if momentum continues.
Harvest Minerals
- Chart: rising 50 and 200-day moving averages with a rising channel. Upside target near 0.55p by the end of next month, provided the shares remain above the 200-day average.
Mendell Helium
- The stock is trading at the top of its channel near 5.6p. The 50-day sits around 3.44p. A continuation above the shorter moving average would point to a move toward 6p by month-end.
Rainbow Rare Earth
- Late to join the rare earth rally but now showing a rising trend. Key support sits around 21p (October/November resistance and early March support). Target toward 31p by the end of the month while RSI rebounds hold above 50.
SkinBio Therapeutics
- Recovered much of its recent losses. Initial target while above the floor of the gap at 7.9p was 12p, with a potential gap fill up to 20p later in the month if momentum continues.
Tortilla Mexican Grill
- Share price boosted by the founder’s return and a clean rising channel. Best-case target around £1.15 by the end of next month while it holds above recent broken resistance near 70p.
Union Jack Oil
- Benefiting from oil strength. The share exceeded the broadening triangle target of around 3.9p with a parallel target toward 5.4p by month-end. Strong rebound supported by a rising 50-day line.
United Oil & Gas
- Bouncing above rising 50 and 200-day lines. The immediate goal is traction above 0.20p, with a target near 0.30p if buying interest continues. Multiple RSI rebounds above 50 underpin the constructive near-term tone.
Trading takeaways
- Let structure lead: indices and commodities are showing clear trend signals. Respect moving averages and channel breaks rather than headlines.
- Watch crude: oil is the dominant macro swing factor right now and will influence energy stocks and inflation-sensitive sectors.
- Bull traps matter: both Bitcoin and Ethereum created false breakouts. Confirmations and follow-through are essential before committing.
- Use technical risk lines: for small caps, the 50 and 200-day moving averages and channel floors provide sensible places to define risk.
Markets remain far from boring. Position sizing and clear stop/risk levels are vital while geopolitical uncertainty keeps the door open for more violent moves. 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.
