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, Audioboom, Alkemy, Brave Bison, Cel AI, Hemogenyx, Haydale, Cadence, Georgina, Hamak, Haydale, Oxford BioDynamics.
Major Market Indices: Where Are We Headed?
FTSE 100 Outlook
The FTSE 100 remains within a rising trend channel that began in April, currently aiming towards the 9,230 level by the end of August. The index is comfortably above recent June resistance, which has now turned into support around 8,910. This level also aligns with the floor of the trend channel, providing a solid base. While a pullback to the 50-day moving average near 8,805 is possible, the expectation is for the market to hold above 8,900 and continue its upward trajectory.
DAX Index Consolidation
The DAX shows signs of healthy consolidation near its highs, hovering around the old resistance level of 24,500 observed back in May and June. Trading around the 23,900 mark—supported by both the uptrend line from April and the 50-day moving average—the index is positioned well for further gains. The Relative Strength Index (RSI) at 57 reinforces this optimistic stance, suggesting ongoing strength and a potential rise to 25,000 in the near term.
Dow Jones Industrial Average
The Dow has been trickier to navigate but maintains a rising channel from April. Near-term resistance is expected between 44,000 and 45,000, with upside potential reaching beyond 47,000 by the end of next month. Key support lies at last week’s intraday low of 43,758; a close below this would raise caution. With an RSI close to 59, the market is primed for a fresh upward leg, especially if it can close decisively above the 45,000 level.
Cryptocurrency Market: Bitcoin and Ethereum Trends
Bitcoin
Bitcoin is currently range-bound between 115,000 and 121,000, based on Coinbase data. A close above 121,000 would signal a breakout toward the top of its rising trend channel from spring last year, targeting as high as 130,000 by the end of August. Support lies at the May resistance level of 112,000 and the 50-day moving average at 109,000, which could see some testing if volatility spikes. Given the increasing corporate treasury adoption of Bitcoin, the outlook remains bullish once the key resistance is breached.
Ethereum
Ethereum has experienced a strong move since last week, breaking above a falling trend channel that had been in place since early last year. The breakout positions Ethereum for a fresh leg upward, with a target near 4,500 by the end of August, as it approaches the top of a broadening triangle pattern. Maintaining support above the 3,490 zone is critical for this bullish scenario to hold.
Gold: Stability with Upside Potential
Gold continues to trade steadily around the floor of its channel, just above the 50-day moving average near 3,323. Initial resistance is expected at the May high of 3,430 by the end of July, with a potential extension toward 3,800 by the end of August. On the downside, support around 3,220 to 3,230 offers a safety net for the metal in the near term.
Stock Spotlight: Selected Companies and Their Technical Setups
Audioboom
After a recent acquisition that boosted revenues, Audioboom is trading near the top of its range at approximately 430p. The rising 50-day moving average at 350p serves as key support. Staying above this level increases the likelihood of pushing higher over the next few weeks. Falling below it would risk a return to the lower range near 300p.
Alkemy
Alkemy is showing strong momentum within a rising trend channel that dates back to early last year. The near-term floor is around 136p, while the 50-day moving average at 154p has recently acted as a springboard. The stock could target 250p by the end of next month, provided it remains above the 50-day line.
Brave Bison
Despite somewhat messy price action, Brave Bison remains in a rising trend channel from November, aiming for a target of 85p by the end of August. Support is established at the channel floor near 60p, which is crucial to maintain for the bullish outlook to remain intact.
Cel AI
Following a £10 million placing, Cel AI shares have bounced off support around 0.19p, a line traced back to December. The stock is trying to offset the dilution impact, with support expected near 27p. Remaining above 2p is essential to sustain any upward momentum.
Hemogenyx
Hemogenyx has been a challenging stock but shows first signs of a potential turnaround. The key level to watch is the June support area at 1.50p. An end-of-day close above this could lift the shares toward the 50-day moving average at 1.65p. Caution is advised, however, as the company has a history of raising capital during rallies.
Haydale
Haydale has been trending higher since the start of the year, currently in a steep rising channel around 58p. Resistance near 90p is in sight, with upside potential to 1p or more by the end of next month. Maintaining support above 58p will be important to keep this bullish momentum.
Georgina
After recent turbulence, Georgina is showing a decent bounce from a channel floor near 5.9p. The 50-day moving average at 8.8p is the next target, potentially reachable within a few weeks if the current support holds.
Hamak Gold
Hamak Gold’s recent gains have been notable, although the company was previously trading well below current levels. The top of its channel sits around 5p, which is the best-case target for now. Support near 4p remains a critical level to watch, especially as the RSI has rebounded twice recently, supporting the upward move.
Oxford BioDynamics
Oxford BioDynamics continues to perform well, bouncing above a rising 50-day moving average on multiple occasions. This pattern often signals mid-move consolidation and suggests a minimum upside target at the old February peak of 84p. Staying above the June peak of 54p is crucial, with a close above that level potentially propelling the shares to 80p or more in the coming weeks.
Conclusion
The current market environment presents a mix of steady trends and promising setups across major indices, cryptocurrencies, gold, and individual stocks. Maintaining key support levels—such as the FTSE’s 8,900, Bitcoin’s 115,000, and critical moving averages in stocks like Alkemy and Hemogenyx—will be vital to sustaining bullish momentum. Watching for breakout closes above resistance points like Bitcoin’s 121,000 or the Dow’s 45,000 could offer entry signals for further upside.
With earnings, acquisitions, and technical patterns all playing their roles, investors and traders should keep a close eye on these levels while remaining prepared for potential volatility. Staying informed and disciplined will be key to navigating the weeks ahead.
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.
