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, Alien, Avacta, Borders, Ceres Power, EnergyPathways, European Metals, Karelian, Manx, Mycelx, Rockhopper, Team, TheWorks.
Market Indices Overview
FTSE 100
The FTSE 100 continues to ride a rising trend channel established since late April, currently approaching the 9270 level. The market is holding above the old channel’s top around 9055, which also coincides with the floor of the newer channel near 9050. We’re likely to see a test of support between 9050 and 9100 before another upward push. The recent EU-US tariffs deal over the weekend has slightly altered the market landscape, but the overall trend remains intact.
DAX
The DAX has been a beneficiary of the recent tariff developments, though the bounce has been somewhat muted. The index remains comfortably above the 50-day moving average at 23,900, with a potential upside target near 25,200 by the end of next month. Movement has been slow in July, with July support around 23,600 and a possible downside risk to the March resistance level at 23,500 if a pullback occurs.
Dow Jones
Investors are still hopeful the Dow will break through the significant 45,000 level. Should that happen, the market could reach as high as 47,400 by the end of next month, aligning with the top of the rising trend channel that started last May. On the downside, support is expected around 44,000, with a deeper pullback potentially testing the 50-day moving average near 43,200.
Cryptocurrency Market Highlights
Bitcoin
Bitcoin remains well positioned near the floor of its rising trend channel from April, with support at approximately 115,000. Below that, the 50-day moving average and April uptrend line converge around 110,000, which also corresponds with the old May resistance near 112,000. The market is expected to stay within this ascending channel for now, maintaining a positive outlook.
Ethereum
Ethereum is showing more volatility and bounce potential compared to Bitcoin. Having recently broken out of a bull flag pattern above 3,870, Ethereum is targeting the upper parallel of its rising trend channel from March, potentially reaching as high as 4,300 to 4,400 by the end of next month. On the downside, maintaining levels above 3,500 is crucial, as this marks the top of the old March resistance channel.
Gold Market Analysis
Gold has been wrestling with resistance near the April high of 3,430. Meanwhile, support is holding around the 3,330 level, where the floor of the channel and 50-day moving average converge. As long as gold remains above this support, the market could push toward 3,800 in August or September. The RSI remains above the neutral 50 mark, supported by rising 50-day and 200-day moving averages, suggesting a cautiously optimistic outlook.
Bulletin Board Stocks to Watch
Alien Metals
Alien Metals is nearing the top of its rising trend channel from September. The recent double RSI bounces indicated a turnaround, and we’re targeting a price of 0.80 pence while staying above the March resistance level near 0.13 pence.
Avacta Group
Avacta has seen consecutive gap ups following disposal news, with the floor of the gap at 48 pence acting as key support. The target price is around 62 pence by the end of next month, with potential for an earlier breakout if momentum continues.
Borders and Southern
Borders and Southern is on a relentless uptrend, close to hitting the 10 pence target forecasted for the end of next month. Strong RSI signals suggest the possibility of upgrading the target to 14 pence by the end of September, mirroring the chart pattern of Rockhopper.
Ceres Power
Ceres Power closed the gap at 129 pence and is eyeing the top of its rising trend channel from February, with a target near 182 pence by the end of next month. Staying above 130 pence is critical for sustaining this upside.
EnergyPathways
EnergyPathways recently gapped up and successfully held the gap, breaking a key resistance line from October and the 50-day moving average. With multiple RSI rebounds, the stock aims for the 200-day moving average at 6.7 pence soon, and potentially 8 pence by next month, as long as it remains above 5 pence.
European Metals
After a significant pullback from its March peak, European Metals has regrouped near the floor of its rising trend channel at around 7.75 pence. A breakout above the 50-day and 200-day moving averages could lead to a target of 13 pence by the end of next month. Recent buying signals and RSI improvements add to the bullish case.
Karelian Diamond
Karelian has demonstrated a key reversal after hitting new lows, with strong RSI support and a rising 50-day moving average. The stock is positioned to retest June highs near 0.97 pence, which aligns with the top of the gap and 200-day moving average.
Manx Financial
Manx is benefiting from FCA approval to offer insurance in the UK, a significant milestone for a company with a market cap of just 32 million. The shares have already hit an initial target of 24 pence and are aiming for 35 pence by the end of next month, supported by an extended RSI rebound and solid resistance at 26 pence.
Mycelx Technologies
Mycelx is showing signs of forming a rising trend channel with an overshoot to the downside, followed by a strong bounce. The 50-day moving average is rising near the lows, a positive technical indicator. The target is 40 pence by the end of next month, provided the stock stays above 24 pence on a closing basis.
Rockhopper
Rockhopper is approaching the top of its rising trend channel from November, with a target around 71 pence. If it holds above July resistance at 63 pence, the stock could reach as high as 92 pence by the end of next month.
Team
Team has gapped up aggressively over recent days, currently hitting the third or fourth target near 43 pence. Holding above July resistance at 33 pence is essential, with a fresh target likely in the upper 50s to 60 pence range by the end of next month.
Works co uk
Works had a strong update about a month ago and is currently consolidating between 55 and 65 pence. A breakout above 65 pence could propel the shares toward 90 pence by the end of September.
Conclusion
The markets and selected bulletin board stocks are showing a mix of cautious optimism and promising technical setups as we move through late July. From major indices like the FTSE 100, DAX, and Dow to cryptocurrencies such as Bitcoin and Ethereum, the overall trend remains positive with key support levels holding firm.
Meanwhile, several smaller stocks, including Alien Metals, Vector, Borders and Southern, and Manx, present exciting trading opportunities based on recent news, chart patterns, and RSI signals. Staying above critical support levels and monitoring resistance breakouts will be key to capitalizing on these moves in the coming weeks.
Stay tuned for further updates as the markets 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.
