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, Aptamer, CEPS, CapAI, Cobra, Europa, Fiinu, Gelion, IntelliAM, Rockfire, SolGold, Team, Vaultz.
Major Indices: Navigating Resistance and Support Levels
FTSE 100: Holding the Line Amid Uncertainty
The FTSE 100 has found support around the floor of its rising red trend channel dating back to May, with Friday’s low near 9,027 acting as a key pivot. While the market remains above this 9,030 zone, there’s cautious optimism for a rally toward May’s resistance line at 9,240 by month-end. However, this looks ambitious considering signs that major markets may have already formed a top.
DAX: Bouncing Back but Facing Challenges
The DAX experienced a sharper pullback than the FTSE, highlighted by a gap down last Thursday. The index is currently attempting to reclaim the old March resistance level at 23,500. To strengthen the rebound, it needs to close above Friday’s peak around 23,800 and ideally surpass the falling 50-day moving average near 23,950 early this week. Resistance at 24,500 and July’s key levels suggest that talking about a 25,000-plus breakout is premature. On the downside, watch for a possible retest of June support at 23,000.
Dow Jones: Echoing DAX’s Struggles
The Dow also mirrors the DAX’s pattern, bouncing off its 50-day moving average near 43,400 after a Friday gap down. A minimum requirement for a sustained recovery is an end-of-day close above mid-July support at 43,800 to attempt climbing back toward 45,000. However, a dip toward the 200-day moving average at 42,800 remains a risk before any renewed upside momentum.
Cryptocurrency Update: Bitcoin and Ethereum
Bitcoin: Testing Support and Resistance
Bitcoin begins the week in a less bullish posture, tracing a less steep rising trend channel following recent declines. It broke below mid-July support at 11,500, a disappointing move that must be reversed to stay in the game. Regaining 11,500 could pave the way for a move toward the channel top near 13,000, with previous targets near 14,000 still on the radar. However, downside risk remains, with potential tests of July support around 10,500 before any meaningful recovery.
Ethereum: Outperforming Bitcoin
Ethereum shows relative strength today, bouncing off its January resistance near 3,400. The goal is an end-of-day close above the rising trend channel’s upper base from March, approximately 3,570. Success here could set the stage for a best-case target as high as 4,400 by month-end. While this is optimistic, the recent rebound in the RSI to 50 is encouraging. On the downside, the 50-day moving average and July resistance around 3,000 serve as critical support levels to watch.
Gold: Traditional Asset Holds Steady
Gold remains resilient within a rising trend channel, having bounced just below the channel floor near 3,270, which aligns with mid-July support. The key resistance to overcome is around 3,430—a level the metal has failed to breach multiple times. Breaking above this could open the path toward 3,800, possibly by the end of next month. On the downside, 3,200 remains a firm support zone during pullbacks.
Stock Market Spotlight: Promising Movers and Technical Setups
Aptamer Group: Building Momentum
Aptamer is gaining traction with positive news flow and improving price action. The stock is nearing its one-year resistance target of 0.51 pence, with an upgraded projection to 0.7 pence by the end of September. Staying above the recently broken resistance of 0.42 pence is crucial for this optimistic outlook.
CEPS: Brewing Potential
CEPS caught attention with a peculiar price spike last month. The current focus is on breaking the resistance zone around 25 pence consistently, aiming for the top of its rising trend channel near 46 pence. Both the 50 and 200-day moving averages are rising, supported by strong recent price action, suggesting a positive setup despite some skepticism about sustainability.
Cap AI: Positive News and Key Resistance Levels
Cap AI recently announced the execution of heads of terms for Game 42, providing a boost to sentiment. The stock faces resistance around the 50-day moving average at 0.45 pence. Clearing this could trigger a move toward 6 pence by month-end, supported by an RSI 50 breakout and a bullish key reversal.
Cobra Resources: Rare Earths and Breakout Potential
Cobra continues its impressive run, fueled by ongoing discoveries and favorable macro trends in rare earths. After surpassing the second target at 2.05 pence, the next objective is the upper parallel resistance line around 3.5 pence by month-end, potentially reaching four-year highs.
Europa Oil & Gas: Confirming a Serious Turnaround
Europa is showing strong signs of recovery, evidenced by a double gap to the upside and a break above the 50-day moving average at 0.73 pence. The target is 1.05 pence by the end of next month, aligned with the top of a broadening triangle pattern from last summer. Maintaining levels above the 50-day line at 0.52 pence remains critical.
Fiinu: Sideways Consolidation with Upside Potential
Fiinu is consolidating sideways above a rising 50-day moving average, with an expected breakout above 10 pence aiming for 15 pence by month-end. The RSI 50 rebound and strong 50 and 200-day moving averages support this bullish case, provided the stock holds above 8 pence.
Gelion: Riding a Rising Trend
Gelion’s shares ricocheted off a sharply rising 50-day moving average, with the 200-day line also trending upward. The target is 34 pence by the end of August, maintaining support above recent levels around 19 pence.
Java Securities: Preparing for a Big Move
Java Securities is in a sideways shuffle above a rising 50-day line, signaling a potential big rise. The price target is 37 pence by month-end, with support at 20 pence acting as the floor of the rising trend channel.
IntelliAM AI: Eyeing New Highs
IntelliAM has already hit its target line near 148 pence twice and looks poised for a fresh upward leg. A close above 148 pence could lead to gains as high as 220 pence by the end of next month, aligned with the upper parallel of a July 2024 resistance projection. Support at 135 pence is key for sustaining this outlook.
Rockfire Resources: Signs of Life
Rockfire’s recent rebound off a rising 50-day moving average and the partial fill of a gap higher from last month suggest strength. With both 50 and 200-day moving averages beginning to rise, the stock targets 0.22 pence by the end of September, holding above 0.90 pence.
SolGold: Powered by Strong News Flow
SolGold has blasted through its second target around 11.6 pence, with the next resistance near 18 pence projected for next month. The company’s recent announcements of multiple high-grade intervals at one of its projects have fueled this rally.
Team: Relentless Rise Continues
Team has broken into new higher ground at 40 pence, with a best-case scenario target of 57 pence by month-end. This target aligns with resistance levels seen at the beginning of 2023, providing a generous timeframe for the move.
Vaultz Capital: Momentum Building After Breakout
Following a recent interview and positive market reception, Vaultz Capital is breaking higher after clearing neckline resistance at 9 pence. The initial target is the 50-day moving average near 13.8 pence, with hopes for a move into the low 20s later this month. Staying above the channel floor and recent resistance at 9 pence remains crucial.
Conclusion: A Mixed Market with Bright Spots
The current market environment presents a mixed picture — major indices are grappling with resistance and support challenges, cryptocurrencies show cautious optimism, and gold holds steady within its channel. On the stock front, several names stand out with promising technical setups and strong news catalysts, offering potential opportunities for investors willing to navigate volatility.
Staying informed about key support and resistance levels, monitoring RSI trends, and watching moving averages can provide valuable guidance as markets evolve. Keep an eye on the highlighted stocks for potential breakouts and trend continuations in 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.
