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, Altona, Aptamer, Brave Bison, Bezant, Hamak, Kodal, Mkango, Nanoco, Pensana, Premier African, Roquefort, Thor Energy, and Tao.
Market Indices Overview
FTSE 100
The FTSE 100 remains above the critical resistance area of 8,800, signaling a bullish setup. The longer prices hold above this level, the stronger the likelihood of a move toward 9,030—aligned with the top of a rising trend channel originating from spring last year. A key moment to watch is the 50-day moving average, currently approaching 8,718, which could act as a support level or a short-term target if a pullback occurs.
With the Relative Strength Index (RSI) just under 57, the market is well-positioned for upward momentum. A decisive end-of-day close above recent resistance at 8,840 may serve as a strong trigger for the FTSE to challenge the psychologically significant 9,000 mark.
DAX
The DAX is demonstrating positive consolidation by holding firm above its rising 50-day moving average. This support level has proven resilient, with multiple RSI rebounds at or above the neutral 50 level reinforcing the bullish stance. The index has also maintained a gap from the end of last month, which further supports the potential for an advance to the upper boundary of its rising trend channel by month-end.
On the downside, watch for support around 23,500, a former resistance level from March, or more conservatively, the mid-June support near 23,000.
Dow Jones Industrial Average
Following a brief holiday break for Independence Day, the Dow is poised to break above 45,000, a resistance level dating back to December and February before the tariff-related sell-off. The longer-term target lies at the top of its rising trend channel from May last year, around 47,500, ideally within the next month.
Support levels to monitor include the June resistance-turned-support at 43,000 and the March resistance near 44,000, which should hold if a pullback occurs.
Cryptocurrency and Precious Metals
Bitcoin
Despite increased Bitcoin treasury acquisitions, the cryptocurrency has yet to launch into a dramatic rally. Currently near the May peak of 112,000, Bitcoin is testing a critical resistance line. A confirmed end-of-day close above 110,000 to 112,000 would be a bullish signal, potentially paving the way toward 125,000 by the end of the month, coinciding with the top of a rising trend channel from March last year.
On the downside, the 50-day moving average near 106,000 serves as immediate support. In case of a typical Bitcoin “rug pull,” a dip toward 100,000 could occur but is expected to be the lower bound for now.
Gold
Gold faces challenges staying within its steep rising trend channel initiated in April. A recent pullback to 3,230 tested the lower boundary, but maintaining above this level keeps the door open for a breakout above the April resistance line at 3,440. Looking ahead, a move toward 3,800 is possible by the end of next month.
The RSI hovering just below neutral 50 at 49 reflects current market caution, underscoring the need for a decisive break above 3,365 to confirm further gains.
Stock Spotlight: Key Movers and Technical Setups
Altona Rare Earths
Altona shares are trading within a rising trend channel from July last year, with a key resistance level near 2.5 pence. Support at 2 pence has held firm on an end-of-day close basis. The stock has shown strength with three RSI rebounds at or above neutral 50 and a golden cross between the 50 and 200-day moving averages last month—both bullish signals suggesting further upward momentum.
Aptamer Group
Aptamer bounced nicely off its rising 50-day moving average following a £2 million placing. Both the 0.50 and 200-day lines are trending upwards, and a golden cross formed in May. RSI has also bounced twice above neutral 50 despite recent dilution. The technical target is 0.52 pence by month-end, with support near 0.35 pence.
Bezant Resources
Bezant is exhibiting a classic V-shaped bull flag pattern, recently breaking June resistance at 0.039 pence. The near-term target is 0.045 pence, with a more ambitious goal of surpassing the 0.05 pence level, a significant resistance point since 2020. The stock shows promising momentum for further gains.
Hamak Gold
Hamak has reached its target of 3 pence, a level predicted based on the company’s Bitcoin Treasury strategy fundraise. The next anticipated resistance is around 4.5 pence, ideally reached by the end of the month, provided the stock stays above the 2 pence support.
Kodal Minerals
Kodal delivered a strong performance with an 18% rise, supported by an RSI break above neutral 50. The stock is approaching the top of a triangle pattern near 0.47 pence, with a critical resistance at the 200-day moving average of 0.36 pence. A confirmed close above this level would signal a more sustained rally, while maintaining support over the 50-day average at 0.3 pence is also crucial.
Mkango Resources
Mkango hit its second near-term target at 35 pence and is eyeing a new target of 45 pence by month-end. Despite a $400 million NASDAQ listing, the UK market cap remains around £100 million, indicating a potential disconnect but strong technical momentum. The stock has experienced two recent gap-ups, reflecting bullish sentiment.
Nanoco Group
Nanoco, after a turbulent recent period, has achieved its first target of 13 pence. The focus now shifts to the top of its triangle pattern from August last year at 18.5 pence, expected by the end of the month or sooner.
Pensana
Pensana has retested its 70 pence peak and the resistance line from last year. The stock remains supported above 60 pence, the floor of current price action. RSI rebounds above 50 in May and early July suggest continued upside potential.
Premier African
Despite recent challenges including the departure of its CEO, Premier African shows a potential buy signal if it closes above the top of the June gap at 0.16 pence on an end-of-day basis. If this occurs without a fundraise, targets could extend to the 200-day moving average at 0.30 pence or resistance near 0.27 pence from November last year.
Roquefort Therapeutics
Roquefort is shaping up for a turnaround, supported by a bear trap rebound from below March support at 1.44 pence and bullish RSI divergence. Strong recent candles and closes above the 50-day moving average at 1.6 pence could propel the stock to the top of its range near 2.75 pence by next month.
Thor Energy
Thor Energy is gaining momentum following a bear trap island reversal pattern. After gapping down in April and gapping up recently, the stock is supported by a rising 50-day moving average. The target is 0.8 pence by the end of next month, with this setup signaling strong bullish potential.
TAO
TAO has resumed its rally after bouncing off the channel floor near 5 pence. The near-term target is 16 pence, with a longer-term goal of 26.5 pence, last reached on June 24. RSI rebounds at neutral 50 and sustained levels above this since late May support continued buying interest.
Conclusion
The market landscape as of early July presents a mixture of promising technical patterns and critical support levels across major indices, cryptocurrencies, precious metals, and a diverse set of stocks. From the FTSE 100’s poised breakout above key resistance to Bitcoin’s test of major thresholds and the bullish setups in small-cap stocks like Altona and Thor Energy, there is plenty to watch in the weeks ahead.
Investors should keep an eye on momentum triggers such as end-of-day closes above resistance levels and RSI rebounds above neutral 50 to confirm ongoing rallies. Conversely, key support levels and moving averages will be crucial in managing downside risks. As always, a disciplined approach to technical signals combined with fundamental awareness will serve well in navigating these dynamic markets.
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.
