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, Ariana, Bluebird, Cobra, CAP-XX, Catenai, Mast, Smarter Web, Thruvision, United Oil & Gas, Venture Life, Westminster Group, Xtract.
Major Indices: FTSE 100, DAX, and Dow Outlook
FTSE 100
The FTSE 100 is currently making steady efforts to clear the 8,800 level convincingly. A crucial support zone lies just above the 50-day moving average at around 8,692, which also acts as the floor of the recent trading range. A positive technical indicator is the rebound of the Relative Strength Index (RSI) above 50, often a leading sign of upward momentum. With both the 50-day and 200-day moving averages trending upwards, there’s optimism for a breakout toward the 9,000 area, potentially reaching as high as 9,020 to 9,030 by the end of July.
DAX
The DAX index shows a slightly more cautious picture. It appears poised to test support near 23,500, a level that served as resistance back in March and coincides with the 50-day moving average. The RSI is hovering around 52, suggesting a balanced outlook. However, the longer-term target remains ambitious, aiming toward 25,000, which aligns with the peak of last year’s trend channel, possibly by the end of this month.
Dow Jones
The Dow Jones Industrial Average is on a bullish trajectory, seemingly “heading for the stars.” The resolution of tariff concerns has cleared the way for continued gains. The index has broken above the March resistance level of 44,000 and is targeting the 45,000 mark, which represents the highs of the past eight months. Looking further ahead, the top of the rising trend channel suggests a potential climb to 47,500 by the end of August.
Technical signals are strong: a double RSI rebound last month has driven upward momentum, and both the 50-day and 200-day moving averages are rising. A golden cross — when the 50-day average crosses above the 200-day — is expected within two weeks, often marking the strongest phase of a bullish market cycle.
Cryptocurrency and Gold: Bitcoin and Precious Metals Analysis
Bitcoin
Despite widespread interest in Bitcoin, especially for treasury purposes, the cryptocurrency has yet to deliver a decisive breakout. It continues to bounce near the 50-day moving average, which is trending upward. The key resistance to watch is the 109,000 level, a May high that Bitcoin has tested multiple times without success.
If Bitcoin breaks through 109, the next target is around 125,000, the upper boundary of the rising trend channel dating back to March last year. A breakthrough within the next few days could end a two-month consolidation phase and signal a fresh rally by the end of July.
Gold
Gold has experienced a “rugpull” after several attempts to break higher. An important resistance line from April sits near 1,445 USD. While the rising March trend channel was initially considered too steep, gold seems to have re-entered this channel around 1,320 USD and sits above the 50-day moving average.
The RSI has climbed back above neutral 50, supporting a rebound that began from below 1,230 USD. The near-term target is to revisit the 1,445 USD resistance, though the upper channel boundary near 1,380 USD appears ambitious for July.
Stocks on the Move: Spotlight on Selected Bulletin Board Stocks
Ariana Resources
Ariana’s recent performance has been lackluster, but technical patterns suggest potential upside. The stock appears to be forming a bull flag with an unfilled gap to the upside. The 50-day moving average is rising near recent lows, and a breakout above 1.25 pence could push shares toward 1.75 pence, aligning with the 200-day moving average resistance. This move could materialize later in the month if support holds.
Bluebird Mining
Bluebird Mining looks poised for another upward push. The shares found solid support around 105 pence and have since bounced, accompanied by a golden cross between the 50-day and 200-day moving averages—a positive psychological signal. The RSI has rebounded above 50 twice in the past month, reinforcing bullish momentum. A target of 2.2 pence by the end of July aligns with the upper parallel of the broadening triangle from October.
Cobra
Cobra’s recent disposal news has sparked a strong market response. After a rebound from 1.45 pence, the shares broke above 1.5 pence, with a target of 2.1 pence by the end of July. A further push to 3 pence by August cannot be ruled out if momentum continues.
CAP-XX
CAP-XX has delivered gains, hitting an initial target of 0.2 pence and ambitiously eyeing 0.4.5 pence by month-end. Maintaining above the old resistance of 0.25 pence is critical for this move. Multiple RSI rebounds since late May confirm the strength of the uptrend.
Katana
Katana has absorbed a 1.6 million-pound fundraise aimed at Bitcoin acquisition and is currently trading within a falling trend channel. A key level to watch is 0.35 pence; closing above this would indicate the stock has digested recent volatility. The next target is 0.55 pence by August, pending an RSI recovery above 0.50.
Mast Energy
Mask has been a standout performer, stretching toward new highs and reaching the third target at 0.9 pence. The next goal is 1.6 pence by the end of July. The RSI has remained above 50 since early May, reflecting sustained strength. A V-shaped bull flag pattern suggests a continuation toward this target while holding above 1.3 pence.
Smarter Web
Smarter Web rebounded strongly after breaking through 255 pence. Speculation around Michael Saylor of MicroStrategy has added attention, though it’s best to focus on technicals. Maintaining above 255 pence sets the stage for a move toward 350 to 400 pence by month-end, supported by an RSI near 560.
ThruVision
ThruVision has shown precise turnaround signals, with an unfilled gap to the upside and a bear trap rebound from below May support. Trading above the 50-day moving average at 1.4 pence, the stock targets 2.5 pence in the coming weeks, contingent on holding above the 50-day line.
United Oil & Gas
United Oil & Gas had a strong run in June and is now testing resistance around 0.16 pence. The target remains 0.3 pence by the end of July, though some caution is warranted. A breakthrough above 0.2 pence would confirm upward momentum, supported by two RSI rebounds at the neutral 50 level.
Venture Life
Venture Life has quietly reached the top of its 2023 rising trend channel near 59 pence. A close above this level could trigger a new leg higher toward 80 pence by month-end. The path appears clear, with little resistance between 60 pence and 1 pound, though price action will confirm this scenario.
Westminster Group
Westminster Group has gapped up twice recently, breaking June resistance around 2.5 pence. Holding above 2.75 pence on an end-of-day close suggests a move toward 4 pence or higher by August, given a bit of time to develop.
Extract Resources
Extract Resources is staging a mid-range bounce near 0.75 pence, with a target of 1.1 to 1.2 pence by the end of July. Positive news regarding Silver King has fueled a 14% rise in the shares, reinforcing the bullish outlook.
Conclusion
The market landscape for early July is a mix of cautious optimism and clear bullish signals across various sectors. Major indices like the FTSE 100 and Dow Jones show promising setups for further gains, while Bitcoin and gold await decisive breakouts. Among individual stocks, several bulletin board names stand out with strong technical patterns and upcoming price targets, offering potential opportunities for investors tuned into chart-based analysis.
Keeping an eye on key support and resistance levels, RSI momentum, and moving average crossovers will be essential to navigate the coming weeks. Stay informed and ready to adapt as these trends unfold.
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.
