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, Argo, Coinsilium, Defence, Futura, Georgina, Microlise, Smarter Web, Wishbone.
Global Market Overview
FTSE 100
The FTSE 100 has recently pulled back from the top of its trading channel near 9,030 points, a level we had anticipated reaching by the end of this month. The market is now testing support around the 8,840 level, which coincides with the breakout channel’s rising trend line. While the current pullback might raise eyebrows, the expectation remains for the FTSE to break through the channel top and push towards 9,200 by the end of next month.
On the downside, if the market breaks below the 50-day moving average at 8,754, further declines could be in store. This support level will be critical to watch in the coming sessions.
DAX
The German DAX index has shown some weakness, pulling back from record highs and even gapping down recently. Immediate support is likely found near the 50-day moving average, around 23,800 points. Despite this, the longer-term target remains the channel top near 25,000. Market volatility continues to be influenced by ongoing tariff uncertainties, which have intermittently affected investor sentiment since April.
Dow Jones Industrial Average
The Dow has been somewhat of a laggard compared to other major indices, trading in a range between 44,000 and 45,000 points. To confirm a bullish breakout, the Dow needs a sustained close above 45,000 on either a daily or weekly basis. Achieving this would open the door to a target near 47,400 by the end of next month.
On the downside, the June resistance level around 43,100 remains a key support zone. Notably, both the 50-day and 200-day moving averages are rising, and we are likely just a week away from a Golden Cross—a bullish indicator that often signals the strongest phase in a market cycle.
Cryptocurrency Spotlight: Bitcoin
Bitcoin continues to dominate with impressive price momentum. Previously, the best-case target was set at $125,000 by the end of this month, but current trends suggest we may reach or exceed this level ahead of schedule. The upper boundary of the price channel lies around this target, with strong support near the $112,000 peak established in May.
An interesting development is the growing number of companies that have incorporated Bitcoin into their treasury strategies. These firms are now sitting on significant profits, which adds a new dimension to Bitcoin’s market dynamics.
Gold Market Update
Gold has been trading within a rising trend channel since late March and is currently holding near the 50-day moving average around $3,320. This is an encouraging sign of support at these levels. Resistance lies near $3,440, a level reached back in April. The best-case scenario sees gold climbing to $3,800 by the end of next month.
On the downside, support at $3,220 is expected to hold, which could present a good buying opportunity if the rally resumes. The Relative Strength Index (RSI) is just below neutral at 50, indicating that a bit more positive price action is needed to reignite upward momentum.
Spotlight on Select Stocks
Argo Blockchain
Argo Blockchain has experienced a downside overshoot but shows potential for recovery. The stock is currently trading within a falling trend channel, with the top near 3 pence. Maintaining support above 2 pence is crucial for a move back towards this upper level, possibly within the next few weeks.
Coinsilium
Despite Bitcoin’s surge, Coinsilium’s shares have remained surprisingly flat. As a company with a Bitcoin treasury strategy, one might expect more correlation. The key resistance to watch is at 25 pence for an end-of-day close, which could pave the way to the channel top near 40 pence by month’s end. Support at 20 pence and the 50-day moving average near 16 pence remain critical.
Defense Holdings
Defense Holdings is attempting to revive its earlier rally from June. The stock bounced off the 50-day moving average and is targeting the 0.47 pence level shortly, with a longer-term target of 0.60 pence. Staying above the rising 50-day line near 0.36 pence will be key to sustaining momentum.
Futura Medical
Futura Medical has shown a notable revival, nearing the 15 pence target that was suggested recently. The stock is approaching the top of a triangle pattern around 15.5 pence, with the next significant resistance at 20 pence. Maintaining a price above the recent close at 11.5 pence will be important for continued gains.
Georgina Energy
Despite some negative commentary, Georgina Energy and Tia have rebounded within a broadening triangle formation. Recent support around 5 pence has held, and the upgraded Mineral Resource Estimate (MRE) appears to be positively influencing the shares. A close above both the 50-day and 200-day moving averages near 8 pence could unlock a move to 13 pence.
Microlise Group
Microlyze’s chart suggests something interesting may be underway. The stock has staged a strong step rebound, seemingly breaking out of a bear trap below the rising 50-day moving average. The pattern of vertical and sideways moves points to a potential target of 145 pence by month-end, hinting at possible good news in the pipeline.
Myriad Advertising
Myriad Advertising continues to claw back losses, showing signs of a possible cup and handle pattern, albeit requiring some imagination. The stock is approaching the top of a broadening triangle at 0.022 pence, with better rewards above 0.05 pence, a level that acted as resistance back in May. Price action above the 50-day moving average at 0.014 pence today is a positive sign.
Mirriad Advertising
Mirriad’s chart is more straightforward, featuring a wide rising trend channel. The shares appear to be awakening after a gap up last month. The resistance line projects a target as high as 0.046 pence by the end of July, with support near 0.035 pence providing a solid base.
Made Tech
Made Tech is showing a wide rising trend channel, indicating that the shares are stirring again. Looking at an increasing trend channel around 46p, while we stay on the right side of 35p.
Rockfire
Rockfire has enjoyed a second wind, rebounding above a rising 50-day moving average following a gap up. The initial target is near 0.11 pence, with a more ambitious goal of 0.22 pence by the end of next month. Maintaining support just under 0.09 pence will be vital for this rally.
Rockhopper
Rockhopper’s shares are in a decent rising trend channel, forming a bull flag above previous resistance. The target price sits around 70 pence, with support at 56 pence. This setup suggests continued recovery potential in the near term.
Smarterweb
Smarterweb presents an intriguing case where Bitcoin’s strong performance hasn’t yet translated into share price gains. Despite Bitcoin rising over 4% recently, the shares have remained muted. Support around 350 pence held yesterday, and the focus is now on breaking through resistance between 410 and 420 pence. A successful breakout could see the stock rallying above 500 pence by month-end.
Wishbone
Wishbone has impressively hit every suggested target on the nose in recent updates. The next potential resistance is the July peak around 1.1 pence. Staying above 0.6 pence should help maintain upward momentum as the stock aims for this next milestone by the end of next month.
Conclusion
The current market landscape is a mix of cautious optimism and strategic positioning. While global indices like the FTSE 100, DAX, and Dow show signs of testing key support and resistance levels, Bitcoin continues to outperform with strong momentum. Gold remains steady within its trend channel, suggesting resilience amid market uncertainties.
On the stock front, several bulletin board stocks are exhibiting promising technical setups, with some showing revived rallies and others poised for breakout moves. Keeping an eye on key moving averages and resistance levels will be crucial for investors navigating these opportunities.
As we move deeper into July, the coming weeks will be pivotal in confirming whether these trends hold or if the markets face renewed volatility. Staying informed and responsive to technical signals will be essential for capitalizing on emerging opportunities.
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.
