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, Ethereum, Gold, Alien Metals, Avacta, Bluebird, CAP-XX, Empyrean, EnSilica, Hydrogen Utopia, Mirriad, Premier African, Sealand, Tiger, Wizz.,
Market Indices: FTSE 100, DAX, and Dow
FTSE 100
The FTSE 100 recently retreated from its record highs, pulling back from the top of its rising red channel established since May. The key target zone for the index is around 9,240, which Zak expects to be tested within the next month, ideally by the end of July.
Support remains firm at the previous target near 9,050, with the worst-case scenario involving a test of the channel floor around 8,975. Should the market face further setbacks, the 50-day moving average at 8,838 could come into play as a strong support level. Overall, the channel is expected to hold steady near 8,975 in the near term.
DAX
The DAX index has also softened from its recent highs. Zak highlights that the index danced around the 50-day moving average for nearly a month, with the 50-day line currently near 23,900. Above this, there remains room for growth toward the top of last year’s channel, potentially reaching as high as 25,300 by the end of August.
Encouragingly, the RSI remains above the neutral 50 level, indicating a positive momentum despite the pullback.
Dow Jones Industrial Average
The Dow broke out of a flag pattern but has since pulled back from record highs near 45,000. Zak notes the importance of a weekly close above 45,000 to maintain momentum toward the upper trend channel, with a target as high as 47,300 by next month’s end.
On the downside, the Dow is expected to hold above 44,000, with the 50-day moving average near 43,200 serving as a key support threshold.
Cryptocurrency Update: Bitcoin and Ethereum
Bitcoin
Bitcoin has experienced a “rug pull” recently, likely influenced by Federal Reserve announcements or inactions. The market has shown potential support around 115,000, with a possible retest of the May peak near 112,000.
Technical support zones include the April uptrend line and the 50-day moving average, ranging between 110,000 and 112,000. To regain strength, Bitcoin needs a decisive move above 120,000 to aim for the channel top around 145,000 by the end of next month, although this now seems optimistic.
Ethereum
Ethereum has been a standout, newly included in Zak’s analysis. Unlike Bitcoin, Ethereum shows healthy divergence and is trading above its previous channel top with a target of 3,480 in sight.
Looking ahead, the upper parallel of the rising trend channel from March suggests Ethereum could reach as high as 4,300 by the end of August. This optimism is tempered by market conditions but worth watching closely.
Gold Market Analysis
Gold has struggled to break through the April resistance level near 1,430. Zak was anticipating a breakout that could push prices up to 1,800 by next month, but this has yet to materialize.
Support is expected to come from the falling channel since April and the 50-day moving average around 1,316, suggesting a consolidation phase before any meaningful upward move.
Stock Highlights: Key Picks and Technical Setups
Alien Metals
Alien Metals shows promise with an RSI rebound from 50 and rising 50 and 200-day moving averages. Zak expects upward follow-through with a minimum target of 0.12 pence and a best-case scenario between 0.17 and 0.18 pence by the end of next month, provided it stays above the 50 and 200-day lines near 0.09 pence.
Avacta
Avacta appears to have turned a corner with an RSI 50 rebound, a historically reliable leading indicator. Since December, the stock moved from roughly 45 pence to 60 pence. Currently, it’s testing the 45 pence target, with potential to reach 62 pence by next month, assuming it remains above the 200-day line at 41 pence—a key threshold marking the shift from bear to bull market.
Bluebird
Bluebird is consolidating around the old target of 1.05 pence. Zak’s optimistic target points to a move up to 2.2 pence by the end of August, with cautious traders advised to wait for a close above recent resistance at 1.45 pence.
CAP-XX
CAP-XX is racing toward its best-case target of 0.45 pence, possibly achieving this by month-end. The stock remains strong above the July peak at 0.31 pence, with a critical support level near 0.35 pence, which previously acted as resistance. A solid consolidation around the 200-day line near 0.2 pence suggests bullish momentum building.
Empyrean Energy
Empyrean is looking good so far, we are yet to hit our target around 0.20p. Good consolidation here – either sided of the 200- day line.
EnSilica
EnSilica, a personal favorite of Zak, shows strength with three bounces off the 50-day line and a breakout above the 200-day moving average at 41 pence. The initial target is the top of the falling trend channel at 45 pence, with a best-case scenario of 59 pence by next month. Maintaining above 40 pence is crucial.
Hydrogen Utopia
Hydrogen Utopia looks ready for business with resistance near 1.6 pence and the 50-day line just below. A daily and weekly close above this level could target the 200-day line at 2.3 pence. Key technical signals include an RSI above 50 and a “bear trap” reversal pattern, making this an exciting setup.
Mirriad
Mirriad’s recent announcement has sparked interest. The stock has a rising 50-day line around 0.011 pence and trades near this level. The next target is a retest of 0.02 pence, possibly by month-end. However, the RSI remains below 50, suggesting cautious investors may want to wait for stronger momentum.
Premier African
Premier African faces some market noise from spoof videos but is attempting a U-shaped turnaround. Resistance at the 200-day line near 0.03 pence must be broken for a sustained rally, with potential upside targets at 0.04 and 0.05 pence.
Sealand
Sealand surged 25% recently after breaking out of a falling wedge. The stock is challenging the 50-day line at 0.05 pence, with a target of 0.067 pence at the top of its broadening triangle from May. A longer-term target could reach the 200-day moving average at 0.15 pence, though that may be optimistic in the short term. Notably, a bullish RSI divergence supports this positive outlook.
Tiger Royalties
Tiger Royalties remains below the 50 RSI threshold, indicating a wait-and-see approach. A close above the 50-day line at 0.20 pence and an RSI above 50 would be a positive signal for a potential rebound toward the upper 0.28 pence range in the coming weeks.
Wizz Air
Wizz Air stands out among the broader market with a recent gap up and a break above resistance at 11.54 pounds. A weekly close above this neckline could propel the stock toward 13 pounds or higher. The RSI has also moved above 50 for the first time in nearly six weeks, reinforcing bullish momentum.
Conclusion
Zak Mir’s detailed technical analysis offers a valuable snapshot of current market conditions across multiple asset classes. From major indices to cryptocurrencies and select stocks, the themes of support, resistance, and momentum indicators like RSI and moving averages recur, providing traders with clear actionable insights.
Whether you’re tracking the FTSE 100’s channel dynamics, Ethereum’s divergence from Bitcoin, or the promising setups in stocks like Alien Metals and EnSilica, there’s plenty to watch as we approach the end of July and look toward August. Staying above key moving averages and monitoring RSI levels will be critical for navigating the coming weeks.
Keep an eye on these levels and setups to capitalize on potential opportunities in this evolving market landscape.
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.
