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, Bluebird, Blue Star, Cel AI, Coinsilium, Empire Metals, Fragrant Prosperity, Orchard, Pri0r1ty, Smarter Web, Tiger, Vault, Vinanz, Valirx.
Market Overview: Indices and Commodities
FTSE 100: Holding Support and Eyeing New Highs
The FTSE 100 has shown resilience, finding solid support around the 8,800 level for two consecutive days. Recent lows have hovered near 8,791, with end-of-day closes consistently above 8,800. This is a positive sign, suggesting the market is holding its ground.
Key resistance remains at the old March high of 8,908, with potential to push towards 9,020 by the end of next month. The RSI (Relative Strength Index) has been above the neutral 50 mark since late April, indicating sustained strength. Additionally, the 50-day and 200-day moving averages are rising in parallel, forming a classic “golden cross” pattern, which often signals a bullish trend continuation.
DAX: Testing Resistance Amidst Recent Weakness
The DAX index has been under pressure lately, with an expected test of the 50-day moving average occurring recently. However, the market remains below the March peak of 23,500. For a more bullish outlook, a close above this level is necessary to dismiss the risk of a further decline, potentially filling a gap down to 22,500.
While above the 50-day line, look for attempts to rally beyond 23,500, which could pave the way for renewed upward momentum.
Dow Jones: Navigating a Rising Trend Channel
The Dow has displayed some indecision but remains within a rising trend channel, currently near the 42,000 level. The lower boundary of this channel acts as support, and a break above 43,000 by the end of the month would be a bullish confirmation.
On the downside, a test of the 50-day moving average at 41,300 is possible, especially given the RSI sitting below neutral 50. A pullback to this level could be healthy before any fresh move higher.
Bitcoin: Early Signs of Strength Near Key Moving Average
Despite widespread enthusiasm for Bitcoin as a treasury asset, the market remains early in its recovery phase. Bitcoin is trading around its 50-day moving average near the 103,000 level, with resistance at 109,000 from last month’s highs.
The best-case scenario targets Bitcoin reaching 125,000 by the end of July. The RSI staying above 50 supports this optimistic outlook, while downside risk includes a retest of the May resistance and the 200-day moving average around 97,000.
Gold: Battling the 3,400 Resistance Level
Gold continues to struggle to break through the stubborn 3,400 level. Recent trading remains below this resistance, but a sustained end-of-day close above it could trigger a rally towards the top of the channel formed since March, potentially reaching 3,800 by the end of next month.
On the downside, support lies near the 50-day moving average at 3,317.
Stock Spotlight: Charting Promising Moves
Bluebird Merchant Ventures: Hitting Targets and Eyeing New Highs
Bluebird Merchant Ventures has impressively hit its initial targets of around 0.8p and 1.05p. Maintaining levels above 8p, the stock looks poised to retest the highs of 10.5p and potentially climb as high as 1.8p to 1.9p by the end of next month, following the upper parallel of a triangular pattern.
Blue Star: Strong Momentum Above Key Resistance
Blue Star is exhibiting strong upward momentum, trading above the early-year resistance at 14p. While holding this level, the stock could reach the red resistance line around 26p, possibly as soon as the end of next week.
Cel AI: Second Attempt at Upside Breakout
Cel AI is making a renewed push upwards, with the old target of 61p now acting as support. The next target is a retest of 0.9p, expected in the coming days.
Coinsilium: Bull Flag Formation Suggests Further Gains
Coinsilium has rallied well and is forming a bull flag pattern, a bullish continuation signal. Holding above support near 35p, the stock could reach its best-case target of 50p by the end of June.
Empire Metals: Surpassing Targets with Bullish Projections
Empire Metals has exceeded multiple targets—12p, 16p, and 22-23p—and with sustained trading above 22p, it may climb to as high as 34p by the end of next month, following the upper parallel of the resistance projection from April 2022.
Fragrant Prosperity: Preparing for a New Upside Move
After closing above a sharply rising 50-day moving average, Fragrant Prosperity is near a key support level around 1.2p. A sustained move above this could lead to a rise towards 1.8p, reaching the top of a falling trend channel.
Orchard: Breaking Out with Strong Potential
Orchard has broken above a significant red resistance line, surpassing the second target at 57p. If momentum continues, the stock could revisit a late 2020 resistance projection near 80p by the end of next month.
Pri0r1ty: Testing Key Resistance Levels
Pri0r1ty, a Bitcoin-focused stock, narrowly avoided hitting the top of a falling trend channel near 7p. The next level to watch is the 200-day moving average at 8p, which it has yet to breach since listing late last year. A retest of this level seems increasingly likely in June.
Smarter Web: Stock of the Year in a Rising Trend
Smarter Web continues to thrive within a rising trend channel established last month. The stock is currently supported near £4, with a target of £5 by the end of next month. This momentum is supported by a strong uptrend and rising moving averages.
Tiger: Reviving Momentum with Golden Cross in Sight
Tiger has touched its initial target of 26p twice and is aiming for 35p by the end of next month. The 50-day and 200-day moving averages are rising, setting up a golden cross, which often signals a strong bullish phase ahead.
Vault: Chart Setup Suggests Strong Upside
Vault is one of the most promising charts currently, having surpassed the 0.6p level with no resistance until around 1.5p to 1.6p. An unfilled gap to the upside was observed recently, and the stock is expected to reach 1.5p to 1.6p by the end of next month. The golden cross formation here is anticipated next week, further supporting the bullish case.
Binance: Back on the Rise
After a quiet period and pullback in January, Binance appears to be gaining momentum again. Staying above the resistance level at 20p could lead to a move towards the upper channel target of 27p in the coming days.
Valerics: Early Signs of a Broadening Triangle Base
Valerics is showing the beginnings of a broadening triangle base, with an unfilled gap to the upside. Maintaining levels above post-March resistance near 63p could see the stock reach 1.2p by next month. However, caution is warranted due to the potential for fundraisers, which can affect price action.
Conclusion
The current market landscape presents a mix of cautious optimism and targeted opportunities. Key indices like the FTSE 100 and Dow are maintaining support and showing signs of bullish continuation, while Bitcoin and Gold face critical resistance levels that could dictate their near-term trajectories.
On the stock front, several bulletin board stocks are demonstrating compelling chart setups and momentum. From Bluebird Merchant Ventures hitting targets to Vault and Smarter Web building strong bullish cases, there are plenty of promising names to watch as we move through June and into July.
Staying informed on moving averages, RSI levels, and key resistance/support lines remains essential for navigating these markets effectively. With golden crosses appearing on multiple charts, the potential for continued upward trends is significant, but as always, prudent risk management is key.
Keep an eye on these developments as the summer unfolds—opportunities abound for those ready to act on well-charted signals.
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.
