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, Gold, Coinsilium, Falcon, Haydale, Helium Ventures, Metro, Metals One, Pipehawk, Physiomics, Seeing Machines, Smarter Web, Solvonis, YellowCake.
Major Market Indices: Tracking Momentum and Key Levels
FTSE 100: On Track Toward Rising Trend Channel Resistance
The FTSE 100 index is showing encouraging signs as it attempts to climb towards the upper boundary of a rising trend channel that has been in place since March last year. The critical resistance zone lies around 9,020, which aligns with the channel’s top. Earlier this year, the market encountered resistance at 8,908, and this level now serves as an initial target for bulls, especially as the FTSE remains comfortably above the 8,800 support it regained at the start of June.
On the downside, the worst-case scenario could see a pullback to approximately 8,700, but expectations suggest the index will hold above this level. Technical indicators reinforce this positive outlook: both the 50-day and 200-day moving averages are trending upwards, mirroring a golden cross scenario, which historically signals bullish momentum.
DAX: Establishing Support and Eyeing Channel Tops
Turning to the German DAX index, the market is currently consolidating around the 23,500 mark, which was a significant resistance level back in March. This area has now transitioned into a solid support base. As long as prices stay above this level, the DAX could retest the 22,300 to 23,300 support zone from late April if minor corrections occur.
The bigger picture points toward a push to the top of the channel near 24,700, potentially by the end of July. However, caution is warranted as the recent gaps down hint at a somewhat “toppy” or vulnerable market condition. Still, the ability to hold support at former resistance is a reassuring technical development.
Dow Jones: Struggling but Holding Key Levels
The Dow Jones Industrial Average has faced challenges maintaining momentum, particularly near the floor of its rising trend channel from May last year, around the 42,000 level. Despite the struggle, the index remains above this critical support.
A weekly close above 43,000 would act as a trigger for renewed upward movement, clearing resistance established after March. The next logical target after that would be 44,000, with the potential to reach as high as 47,000 if the bullish trend continues. On the downside, the 50-day moving average, currently rising around 41,100, offers a safety net.
Relative Strength Index (RSI) readings just above neutral 50 suggest the market is balanced, providing a cautiously optimistic outlook—half full rather than half empty.
Cryptocurrency and Precious Metals: Bouncebacks and Breakouts
Bitcoin: Double Bounce Indicates Healthy Rebound
Bitcoin has demonstrated resilience with a notable double bounce off the 50-day moving average this month, imparting a healthier glow to the cryptocurrency than seen in recent months. The immediate challenge for Bitcoin is to test and break through the recent record peak of approximately $112,000 from last month.
Successfully conquering this resistance could pave the way toward the upper end of a rising trend channel dating back to early last year, with a target as high as $125,000 potentially achievable by the end of July. The extended bounce off the RSI 50 level over the past week is a positive technical sign, often a leading indicator of upward momentum.
Both the 50-day and 200-day moving averages continue to trend upwards, reinforcing an overall bullish technical framework for Bitcoin.
Gold: Poised to Benefit from Geopolitical Unrest
Gold prices are expected to capitalize on current geopolitical tensions, which traditionally drive demand for safe-haven assets. The key level to watch is $3,400; breaking above this would open the door to a target near $3,800, coinciding with the top of a March trend channel.
This breakout could materialize by the end of next month. Supporting this optimistic view are multiple rebounds off the RSI 50 level over the past two to three weeks, signaling sustained buying interest. The downside risk appears limited to a close below the 50-day moving average, currently around $3,275, which would be a warning sign to reassess positions.
Spotlight on Bulletin Board Stocks: Momentum and Targets
Coinsilium: Surging Past Resistance
Coinsilium has made a significant move by breaking through the 12 pence resistance zone with conviction. Previously, 12 pence was a major barrier, and surpassing it signals potential for further gains.
The next resistance to monitor lies around 20 pence, which may serve as a short-term target over the next few days. Looking ahead, a target of 30 pence by the end of next month seems achievable while the stock remains above 12 pence.
Falcon Oil & Gas: Gap Up and Rising Trend Channel
Falcon Oil & Gas is showing strength with a notable gap higher and a clear rising trend channel starting from December. The top of this channel approaches 10 pence, a target anticipated by the end of June if the stock maintains levels above recent resistance near 7.75 pence on end-of-day closes.
Both the 50-day and 200-day moving averages are climbing in parallel, mirroring a golden cross scenario that often precedes upside momentum.
Haydale: Approaching Key Resistance
Haydale has successfully hit several price targets, reaching 4 pence and now setting sights on the next resistance around 5.1 pence, which was a significant hurdle early last year. This target is expected by the end of June, assuming the stock stays above 4 pence.
Helium Ventures: Strong Performance in Bitcoin Treasury Strategy
Helium Ventures is standing out with robust gains, having surpassed a recent target of 9 pence set just over the weekend. The stock is now eyeing a resistance level around 12 pence, which dates back to 2021 but remains relevant as a near-term target.
Success in maintaining levels above 9 pence on end-of-day closes could see the stock reaching 12 pence by the end of the month.
Metro Bank: Riding a Rising Trend Channel
Metro Bank has delivered impressive gains after a significant gap up, starting from around 50 pence. The stock is currently advancing within a rising trend channel established since October, with the top reaching approximately 173 pence.
This ambitious target could be met by the end of July if the stock remains above the May resistance level of 123 pence. A move past 170 pence would mark a substantial achievement for Metro Bank shareholders.
Metals One: Building a Base for Recovery
Metals One, a previous market hero during April and May, is now consolidating above the 200-day moving average at 10.5 pence. Although recent price action has been less volatile, the stock appears to be forming a solid base.
Targets include a move back towards the mid to upper 20 pence range, possibly reaching 17 to 18 pence even if the stock fades after that. Ideally, Metals One will hold above the 200-day line, which will be crucial for sustaining any rally.
Pipehawk: Broadening Triangle and Buy Signal
Pipehawk is an intriguing contender showing technical strength with a broadening triangle base pattern. The top of this triangle is around 2.25 pence, a level expected to be approached by the end of June if the stock stays above the rising 50-day moving average at 1.48 pence.
Additionally, a gap close buy signal on Friday at 1.45 pence has fueled momentum, suggesting further upside potential.
Physiomics: Benefiting from Recent Deal Activity
Physiomics received a boost from £111,000 worth of deal activity this morning, which has positively impacted the shares. The stock is targeting the top of its channel and the 200-day moving average near 62 pence.
This target is realistic as long as Physiomics remains above the latest price gap around 46 pence.
Seeing Machines: Eyeing Key Resistance and RSI Support
Seeing Machines is bouncing off a rising 50-day moving average, an encouraging technical sign. A break above 2.6 pence, which represents May resistance, would confirm upside momentum.
The ultimate target could be as high as 3.5 pence by the end of July, provided the 50-day average continues to rise and the RSI moves above neutral 50.
Smarter Web: Stock of the Year with Explosive Gains
Smarter Web has been the standout performer, delivering a remarkable 5x gain this year. The shares have surpassed the 220 pence target multiple times and are now eyeing an exponential target of up to 340 pence by the end of July.
This trajectory depends on the stock maintaining levels above 220 pence, which has acted as strong support since mid-May. Holding the 180 to 220 pence range will be critical to sustaining this impressive momentum.
Solvonis: Rapid Rise and Adjusted Targets
Following a recent interview, Solvonis has garnered attention with strong price action. The stock is targeting 26 pence by the end of June, with the possibility of reaching 28 pence if momentum continues.
This outlook assumes Solvonis remains above 2 pence, and both the 50-day and 200-day moving averages are beginning to trend upwards, signaling potential for further gains.
Yellow Cake: Consecutive Monthly Gaps Up and Strong Outlook
Yellow Cake shares have gapped up for the second consecutive month, now trading above the 200-day moving average at 500 pence. The next target is around 584 pence, which could be reached by the end of July.
This price action suggests an improving situation for the stock, bolstered by technical momentum and investor interest.
Conclusion: Navigating Opportunities and Risks Ahead
Across global indices, cryptocurrencies, precious metals, and select bulletin board stocks, the current technical landscape offers a mix of cautious optimism and targeted opportunities. Major indices like the FTSE 100, DAX, and Dow are holding key support levels and aiming for higher resistance zones, with moving averages and RSI indicators providing additional confidence.
Bitcoin and gold both show promising setups tied to technical rebounds and geopolitical factors, respectively. Meanwhile, a variety of stocks on the bulletin board are demonstrating strong momentum, breaking through resistance levels, and setting ambitious price targets for the near future.
Investors and traders should monitor key support and resistance levels, moving averages, and RSI trends to navigate these markets effectively. Staying above critical moving averages such as the 50-day and 200-day lines often signals sustained momentum, while breaks below these can warn of potential downturns.
As always, maintaining a balanced view—acknowledging both the upside potential and downside risks—will be essential for making informed decisions in this dynamic market environment.
Stay tuned for further updates as we continue to track these evolving trends and uncover new opportunities in the weeks ahead.
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.
