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, Botswana, Empyrean, Harena, KR1, Mast, MyHealthChecked, Predator, Sundae Bar, Tungsten West, TM1, Versarien, Vault, Wishbone, and Zenith.
Market Indices Overview
FTSE 100
The FTSE 100 is currently showing promising bullish patterns. Zak highlights a bull flag formation resting on the old resistance level of 8,908, comfortably above the floor of the rising trend channel established in May. The index is nearing the top of a long-dated green channel from last spring, with a key target of 9,040 by the end of July. Should the FTSE close above this level by month-end, the outlook could extend to as high as 9,230 by the end of August.
Initial support stands firm around 8,908, with additional support at the March high and the 50-day moving average near 8,785. Zak’s view is optimistic, suggesting the FTSE is unlikely to remain below 8,900 for any prolonged period.
DAX
The DAX continues to hold above its rising 50-day moving average, a strong bullish indicator. Zak anticipates a potential rise to the upper boundary of the 2024 channel at 25,100 by the end of July. Support is solid at 23,880, with a worst-case scenario around 23,500, coinciding with March resistance.
The RSI has bounced back to neutral (around 50) for the third time recently, reinforcing the strength of this market.
Dow Jones
The Dow has been trading within a range between 44,000 and 45,000 points, with a recent temporary dip below this range. The key focus is on a breakout, supported by a golden cross and RSI above neutral 50. Zak’s best-case target is 47,500 by the end of August, provided the index remains above yesterday’s floor near 43,700. A retest of June resistance at 43,100 remains a possibility in a more cautious scenario.
Cryptocurrency Insights
Bitcoin
Bitcoin started the week with excitement but has since settled into a range between 115,000 and 120,000. A spike to 123,000 was noted, with a target of 126,000 by the end of July. Zak points out a two-week window to reach this target, noting the possibility of a retest of May resistance at 112,000 before any further upward momentum.
Looking ahead, the bullish scenario projects Bitcoin hitting 143,000 by the end of August, aligning with an April resistance line and an accelerating uptrend within a rising channel. Maintaining a level above 115,000 is crucial for this trajectory.
Ethereum
Ethereum has recently hit the top of its rising trend channel near 3,380. A break above this could push prices toward the 3,600 level, which corresponds to the peak from earlier this year. The ideal trajectory would see Ethereum climbing toward the upper parallel of the channel around 4,200 by the end of August.
On the downside, July resistance near 3,050 acts as initial support. The current RSI pattern—with multiple rebounds at neutral 50—suggests the market is healthy and unlikely to drop below 3,200 before moving higher.
Gold Market Update
Gold remains within its April rising trend channel, with the floor around 3,300. Above this level, the next targets are 3,430 (an April resistance line) and potentially 3,800 by the end of August if gold can break through 3,430 soon. The RSI has also rebounded from 50, signaling renewed momentum in the precious metal.
Stock Market Highlights
Botswana Diamonds
Botswana Diamonds experienced a whiplash rebound with a gap higher recently. The stock hit its initial target of 0.34p, with an upside potential toward 0.47p over the next few weeks, provided it holds above 0.34p.
Empyrean Energy
Empyrean is enjoying a significant turnaround after a long dry spell. Currently trading within a falling trend channel, today’s peak reached the channel’s top at 0.07p. Surpassing this could see a move toward 0.11p and the 200-day moving average. On the downside, maintaining above 0.04p is key before any upward momentum can be expected.
Harena Resources
Harena has broken out of a wedge around 1.05p, with an initial target of 1.27p (the 50-day moving average) and a best case of 2p by the end of August. A bullish divergence in the RSI combined with an uptrend line suggests the low could be in place, potentially offering an early entry opportunity.
KR1
KR1 has shown signs of revival, slowly moving upwards. The initial target is 49p, corresponding to the 200-day moving average. Best-case projections see the stock climbing to 73p by the end of August, contingent on staying above the rising 50-day line at 36p.
KEFI Gold and Copper
KEFI recently broke through the 50-day moving average at 0.54p and currently trades near 0.56p. A sustained close above 0.56p, backed by an RSI rebound at neutral 50, could push the stock toward 0.6p or higher. Maintaining levels above the 200-day moving average (0.54p) remains important.
Mast Energy Developments
Mast has exceeded expectations, reaching its fourth target at 63p. Beyond this, the stock could aim for a green line target near 140p by the end of September, though this remains longer term. A retest of initial July resistance at 75p appears likely before month-end.
MyHealthChecked
MyHealthChecked’s recent deal with Boots has generated excitement. The stock is trading near the top of its channel at 20p, with a crucial resistance level just above 13.25p (the 200-day moving average). A strong close above this could propel further gains.
Predator Oil & Gas
Predator, led by a popular CEO, has broken recent neckline resistance just under 4p. The initial target is 5.25p, with a best-case scenario of 8p by the end of August. The 200-day moving average at 4.8p is a key level to overcome in the near term.
Sundae Bar
Sundae Bar shares have shown strong momentum with a gap up and rising 50 and 200-day moving averages. The target is 16p by the end of August, supported by maintaining levels above 10p.
Tungsten West
Tungsten West has also outperformed expectations, establishing itself as a critical metal player in the UK. The stock retraced to a previous target of 8.5p and now eyes 14p by the end of July, with a best-case target of 23p by August’s end. The recent string of strong blue candles indicates robust buying interest.
TM1
TM1 was once considered a zero-value stock but has gained traction following an £8 million grant. It has moved above the 200-day moving average at 0.1p. Holding above this level is essential to test the old December resistance between 0.25p and 0.3p by the end of August. The downside risk includes a potential retest of the gap floor at 0.08p, though the grant provides strong support.
Versarien
Versarien has bounced off its bottom and broken recent neckline resistance at 0.18p. The next target is the 200-day moving average at 0.33p, even if the stock faces resistance thereafter.
Vault Ventures
Vault Ventures is testing July support around 0.018p amid positive company news, including recent Bitcoin, Ethereum, and Solana purchases. A close above the 200-day moving average at 0.023p would open the way to 0.028p. This could signal renewed life in the stock.
Wishbone Gold
Wishbone Gold has hit its target of 0.73p twice. An end-of-day close above this level could see the stock rise to 0.95p, which was a prior support level. The RSI has rebounded above neutral 50, adding to a bullish outlook for the month.
Zenith Energy
Zenith Energy shares have recently declined sharply, creating a gap to fill at 3.5p—a potential technical buying opportunity. Notional support exists around 3.12p for those willing to “catch a falling knife.” The RSI is down to 16, suggesting the stock is oversold but not yet at extreme lows that typically signal a bottom.
Conclusion
Across the board, markets and stocks are showing a mix of bullish signals and key support levels that suggest potential upside in the coming weeks. From major indices like the FTSE 100 and DAX to cryptocurrencies and individual stocks, the technical indicators point to important inflection points. Staying above critical moving averages and RSI neutral levels will be essential for sustaining momentum. For investors and traders, keeping an eye on these targets and support zones could offer valuable opportunities as the summer progresses.
Stay tuned for further updates and analysis as market conditions evolve.
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.
