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, Astrid, Altona, Atlantic Lithium, Avacta, Delta Gold, GCM, Hardide, Oxford Biodynamics, SupplyMe, Strategic Minerals, Tungsten West, Tertiary Minerals.
Markets are showing a mixed picture: strong momentum in the FTSE 100, Europe trying to catch up, cryptos under pressure and a handful of small caps enjoying notable breakouts.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below is a chart-driven, practical summary of key levels, likely paths and stocks to watch over the coming weeks.
Market snapshot
- FTSE 100: momentum remains upbeat with RSI rebounds above 60 and another just under the overbought 70 mark. The index is trading above the old February rising trend channel around 10,270 and heading toward the October channel top near 10,600. Short-term downside floor on a rug pull: channel floor near 10,180.
- DAX: lagging the FTSE and clinging to support above the rising 50-day moving average near 24,400. Top of the April channel sits around 25,700, with a stretch target to 26,300.
- Another large-cap index (labelled DAB): looks stuck around the psychological 50,000 level, with a recent support floor from the late-November rising trend channel near 48,800. Intermediate target at 50,000 and a higher channel top near 52,000 into next month.
- Crypto: Bitcoin and Ethereum show breakdowns and clear downside risk — more below.
- Gold: rebound off the 50-day line has worked well for short-term traders. Key levels shared below.
Indices in focus
FTSE 100
Momentum is the dominant theme. Multiple RSI rebounds and a breakout above the February rising trend channel point to a continuation higher toward the October channel top near 10,600. If sentiment reverses sharply, expect the channel floor near 10,180 to be the short-term support.
DAX
Still trying to catch up with the FTSE. Short-term support rests on the rising 50-day average at around 24,400. Look for the April channel top at 25,700 later this month, with a best-case acceleration to roughly 26,300.
Dow Jones
Trading around the 50,000 area with a recent floor from the November rising trend channel near 48,800. The immediate objective is a return to 50,000, then the channel top close to 52,000.
Cryptocurrencies
Bitcoin
Failed decisively below the prior support at 80,500, with recent resistance around 79,200. On an end-of-day closed basis, the path lower points toward the bottom of the falling trend channel from August — roughly 63,000 by the end of next month — unless price can close back above 80,500 for an early buy signal.
Ethereum
Holds above the old April support (unlike Bitcoin) but still vulnerable. After a breakdown around 2,430, the market could test the falling channel floor near 1,770–1,780. Technicals are oversold, but both the 50- and 200-day averages are declining, with the 200-day exerting downward pressure.
Gold
After a rough stretch, gold rebounded from the 50-day line (a level traders could have used for limit entries). Earlier entries around 4,500 would already show substantial paper gains following the subsequent gap higher.
Key levels to watch:
- Immediate support: previous target around 4,930 — hoping this becomes new support.
- Near-term upside: 5,200, with a higher trend objective near 5,680.
- RSI action showed a 50-level rebound just below the 50 mark, a bullish hint for the near-term rally.
Small caps and stocks to watch
Several bulletin-board and AIM stocks are showing clear chart patterns and tradable targets. Notes below summarise the setup, key support and target levels.
- Astrid Intelligence — Slow start, then strong U-shaped recovery. Initial target was 0.12p, then 0.17p, the 200-day at 0.21p. New target: 0.32p by the end of next month.
- Altona — Broke recent resistance around 1.46p. Next levels: 200-day at 1.64p, then November resistance near 1.90p. Keep an eye on the 50-day moving average as the trend guide and the risk of a potential fund raise.
- Atlantic Lithium — Broke the first target near 13p. The upper parallel of the broadening triangle points to 16–17p by the end of the month while price stays above 13p.
- Avacta — Surprised on the upside with an end-of-day close above 54p. Next target: the 50-day moving average near 64p. Best-case stretch objective is around 90p by the end of next month, though that is ambitious.
- Delta Gold — Broke the top of the rising trend channel at 28p. Upper parallel target near 40p. Key support to hold: recent broken resistance at 26p.
- GCM — Still aiming for 10p on the top of the rising trend channel from March. Stay above recent broken resistance near 7.75p on an end-of-day basis.
- Hardide — Benefiting from contract wins and a steep rising trend channel. Target near 30p by the end of the month while holding above 21p.
- Oxford Biodynamics — Post-placing, the chart shows a broadening triangle from October. Top of the triangle near 0.4p is the near-term objective, with support coming from the rising 50-day line and recent broker resistance around 0.28p.
- SupplyMe Capital — Historically produced sharp one- or two-day rallies. Recent intraday top around 0.38p. If this rally sustains, the upper parallel target sketches out toward roughly 0.046p by month end. Key near-term support: recent broken resistance around 0.026p.
- Strategic Minerals — Comparisons being made to larger peers; market cap is still smaller. Watch price action carefully; the chart suggests scope for meaningful upside 3.6p if momentum persists. Top target 4.6p
- Tungsten West — Already hit the 30p target. Next objective is near 38p by the end of February, provided price stays above 30p.
- Tertiary Minerals — Gapped through resistance and cleared the old target near 0.11. Best-case scenario pencils in a move higher by the end of next month, assuming this is a mid-term consolidation with enough momentum left. Intraday low to watch: today’s low near 0.10.
How to use these levels
- Use the 50-day moving average as a simple trend filter: staying above it favors the upside; breaking below often signals a shift to caution.
- Watch RSI rebounds around the 50 level. Multiple RSI 50-plus rebounds are useful confirmation for trend continuation setups.
- Set clear stop levels at recent structural support (broken resistance turned support), and scale positions as targets are reached.
- Expect occasional bear-trap rebounds in oversold markets. A decisive end-of-day close back above prior support or resistance is a cleaner signal than intraday price action.
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.
