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, AFC, Cel AI, GEO, Huddled, Kefi, Quantum, Roadside, Smarter Web, Tower, Tandem, Vaultz, Wishbone.
Index Overview: FTSE 100, DAX, and Dow
FTSE 100: Holding Steady Above Resistance
The FTSE 100 is currently maintaining a strong position, comfortably holding above its recent resistance level at 8,800. This level, which was previously a range between 8,700 and 8,800, now acts as a foundation for further gains. The 50-day moving average is sharply rising at 8,710, signaling a potential pullback target in case of a rug pull.
The Relative Strength Index (RSI) sits at 54, comfortably above the neutral 50 mark, suggesting steady momentum. The expectation is for the FTSE 100 to reach between 9,020 and 9,030 by the end of July, aligning with the upper boundary of the green rising trend channel that has been in place since spring 2023. While the catalyst for this move remains uncertain, the technical setup looks promising.
DAX: Poised for a Breakout
The DAX has been somewhat indecisive recently but remains above its rising 50-day moving average and carries an RSI just above 50. This sets the stage for a potential breakout above 24,000, with a target possibly reaching as high as 25,000 by the end of August.
Should a pullback occur, support is expected around the 23,000 level, making this range fairly straightforward to monitor for traders.
Dow: Approaching Key Resistance Levels
Although the Dow was closed for a holiday on this day, it is trending toward the old resistance zone around 45,000, which was significant in December and February. A successful breach of this level could propel the index to around 47,600 by the end of next month.
On the downside, the key support to watch remains at 43,200, the old resistance from June now acting as a floor.
Cryptocurrency Insights: Bitcoin’s Consolidation and Outlook
Bitcoin recently broke through a resistance line dating back to May, though follow-through has been limited so far. Despite this, the price is holding above the 107 level, with the 50-day moving average just below 106, providing a solid base.
The RSI is healthy, just under 57, indicating a positive consolidation phase. This setup suggests that Bitcoin could see an upward push over the weekend or shortly thereafter, with a bullish target of 125,000 by the end of next month, provided it stays above the 107 support zone.
Gold: Testing Support Amidst Rising Trend Channel
Gold remains contained within a rising trend channel established since March, but the market is struggling to stay comfortably above the 50-day moving average at 3,326. The RSI is slightly below the neutral 50 level, hinting at some potential weakness.
There may be a dip toward the late June floor at 3,223, which would serve as a crucial support test. However, maintaining levels above the 50-day line is key to sustaining the uptrend. The initial resistance target remains at 3,440, a level of significance dating back to April.
Selected Stocks: Momentum and Potential Breakouts
AFC Energy: Bullish Consolidation Ahead
AFC Energy has rallied strongly following the announcement of a new joint venture, forming what can be described as a “V-shaped bull flag.” This pattern suggests a mid-term consolidation phase before retesting resistance from last year near 26p.
Holding above the gap floor at 16p is critical, with the RSI comfortably above 50, indicating strength. The outlook is positive, with a target of around 26p by the end of next month.
Cell AI: Eyeing Gap Fill Upside
Cell AI, a Bitcoin treasury strategy company, bounced off the floor of its rising trend channel and now faces resistance around 0.37p. Clearing this level could open the path to filling a gap up to 0.49p.
Maintaining levels above 0.30 and the lower boundary of its current flag formation will be essential for this upward trajectory.
Geo Exploration: Rising Moving Averages Signal Opportunity
Geo Exploration, highlighted by a follower recently, shows promising technicals with both its 50-day and 200-day moving averages rising. The minimum target is 0.23p by the end of July, provided the price stays above the post-April resistance at 0.15p.
Despite some liquidity challenges, the stock gapped up today and looks set to approach the top of a broadening triangle near 0.40p. This movement may unfold over the next few weeks, with the 200-day moving average at 0.31 serving as a key support level.
Huddled Group: Settling After Volatility
Huddled shares have experienced a volatile period, but recent support near 4p and an RSI climbing above 50 suggest a turnaround. A close above the rising 50-day moving average at 5.60p could trigger a rally toward 6p and potentially beyond.
The stock remains within a rising trend channel established since December, with the channel’s top near 7.70p — a plausible target by the end of summer.
Quantum Blockchain: Ready to Break Out
Quantum Blockchain sits in a rising trend channel with a base target of 1.2p by the end of July. Both the 50-day and 200-day moving averages are trending upward, supporting this outlook.
The stock aims to fill a gap up to 1.57p by the end of August, provided it holds above the key support at 0.95p.
Roadside Real Estate: Upgraded Target After Acquisition
Following the purchase of a filling station, Roadside Real Estate remains in a strong rising trend channel. The previous target of 55p by the end of July has been upgraded to 60p, reflecting the dynamic resistance levels that rise over time.
Maintaining support around 45p is crucial to sustaining this bullish momentum.
Smarter Web: Recovery in Progress
Smarter Web has shown signs of recovery, peaking recently near 375p. A close above this level could set the stage for a retest of the 600P zone by the end of August, with July being the ideal timeframe if Bitcoin gains traction.
Support lies near 315p, with the previous low of 312p also providing a safety net.
Tower Resources: Multiple RSI Bounces Signal Strength
Tower Resources exhibits multiple RSI bounces off the neutral 50 level, with rising 50-day and 200-day moving averages reinforcing the positive outlook. The target is 0.42p by the end of July, with minimal resistance until the one-year high near 3.55p.
Staying above the 50-day moving average at 026p, ideally closer to 0.28p, will be important for continued strength.
Tandem: Bull Flag Suggests Imminent Breakout
Though not a usual focus, Tandem’s chart shows a beautiful bull flag above recent resistance. The stock, with a market cap around £10 million, has experienced a golden cross between the 50-day and 200-day lines at the end of last month.
An end-of-day close above 195p could propel the price toward the top of the rising trend channel from December 2023, potentially reaching 270p by the end of August — reminiscent of the rally seen in early 2023.
Vaultz: Rebound After Sharp Decline
Vaultz appears to be back in business after a painful pullback from above 55p down to around 13p. Holding above 13p opens the door to a target of 32p by the end of July, supported by an RSI bounce off the neutral 50.
This stock could gain traction quickly if momentum builds.
Wishbone: Ahead of Schedule on Gains
Wishbone is progressing faster than expected, with a target of 0.5p possibly achievable within the next couple of weeks. Remaining above the initial June resistance at 0.36p will be key to sustaining this advance.
Conclusion
As we navigate the early days of July, the technical outlook across major indices, cryptocurrencies, and select stocks provides a mix of steady growth, consolidation, and breakout potential. From the FTSE 100’s poised climb to Bitcoin’s promising consolidation and the bullish setups in various equities, the market landscape offers multiple opportunities for savvy traders.
Keeping an eye on key support and resistance levels, moving averages, and RSI trends will be essential in capitalizing on these moves. Stay tuned for further updates as these scenarios develop through the month.
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.
