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, Capai, Cobra, Dekel, Jupiter, Metals One, Mirriad, Norman Broadbent, Satsuma, Shearwater, Wishbone.
Market Indices: FTSE 100, DAX, and Dow Outlook
FTSE 100 Approaches Crucial Resistance
The FTSE 100 is rapidly approaching its target zone near 9,030–9,040, aligned with the top of a rising trend channel dating back to spring last year. This level, previously expected to be reached by the end of July, looks set to arrive ahead of schedule. The upside remains valid as long as the index holds above the floor of the red channel and the former resistance around 8,908.
If the FTSE surpasses the 9,040 mark, the next notable resistance lies near 9,230, corresponding to the top of the May rising trend channel. On the downside, a retest of the 50-day moving average at 8,746 could occur, but after recent RSI rebounds at neutral 50, the outlook favors the upside with support expected in the low 8,900s.
DAX Eyes 25,000 Amid Strong Momentum
The DAX continues its advance toward the top of its rising trend channel from spring last year, with the 25,000 level in focus. This target is anticipated by the end of July, provided the index remains above the prior highs near 24,500. The RSI has shown three successful rebounds at the neutral 50 level recently, reinforcing the positive momentum.
Should the index pull back, the critical support to watch is the 50-day moving average at 23,800, which has historically acted as a “rug pull” level. Overall, the technicals favor continuation higher toward the channel’s upper boundary.
Dow Consolidates Ahead of Golden Cross
The Dow Jones Industrial Average is currently consolidating above the March resistance level of 44,000. This consolidation phase is viewed as a mid-move pause before a potential run toward the top of the rising trend channel from May last year, around 47,400, likely by the end of August.
A quick breakout above the 45,500 area—where December and February resistance converge—could trigger the next leg up. Notably, the Dow is about a week away from a golden cross, where the 50-day moving average crosses above the 200-day line. Historically, the lead-up to a golden cross marks the strongest portion of a market cycle, adding to the bullish case.
Cryptocurrency and Precious Metals: Bitcoin and Gold Trends
Bitcoin Targets Channel Highs Near $125,000
Bitcoin continues to show strength, having broken through the May resistance line at $110,000. With a couple of RSI rebounds above the neutral 50 level and trading above the 50-day moving average just below $107,000, Bitcoin is poised to challenge the top of its rising trend channel from March last year, around $125,000, potentially by the end of July.
While the timeline might extend, the technical setup remains favorable, suggesting valuable upside potential in the near term.
Gold Eyes $3,800 Despite Recent Pullback
Gold remains within a rising trend channel, though the slope appears shallower than previously drawn. The metal is targeting resistance near $3,430, a level established in April, with a longer-term upside target near $3,800 by the end of August.
On the downside, support is expected no lower than $3,200 following a rug pull at the end of June. The RSI currently sits slightly below neutral at 47, signaling room for improvement. The 50-day moving average is still rising, suggesting that gold may have recently bounced off the channel floor and is preparing to move higher.
Selected Stocks: Technical Setups and Price Targets
Cap AI: Building a Base for Summer Gains
Cap AI experienced a brief downside overshoot but has since stabilized near the channel floor at 0.42p. The critical resistance to clear is 0.51p, with the next target at 0.66p. The overall pattern points to a potential rise toward 1.1p by the end of summer, corresponding to the top of the rising trend channel from February.
Cobra: Benefiting from Rare Earths and Geopolitical Tailwinds
Cobra continues to shine, boosted by its rare earth discoveries and favorable developments amid export bans and tariff issues. Having reached the second target near 2.05p, the stock is now aiming to retest a four-year resistance zone around 3.5p, potentially by the end of July.
Dekel: Recovery Underway After Strong Production Update
Dekel, which has faced challenges recently, received a positive boost from a company update highlighting production figures. The stock staged a key reversal to the upside and is holding above the gap floor at 0.62p. The next objective is to fill the last gap up to 0.85p by month-end, even if some retracement occurs afterward.
Jupiter Fund Management: Rallying Beyond Tariff Fears
After a dip related to tariff concerns, Jupiter has rallied strongly from around 65p to hit a target of 97p, at the top of a broadening triangle pattern dating back to early last year. The next resistance lies at 115p, with ambitions toward 150–160p by the end of August, buoyed by recent acquisition news.
Metals One: Eyes on 32p and Beyond
Metals One is testing its 50-day moving average around 27p, a key near-term trigger. The next target is 32p, with a possible retest of previous highs afterward. The RSI remains healthy at 60, indicating ample momentum to support further gains. Support at late June resistance near 23p remains crucial.
Mirriad: Forming a Base for a Potential Breakout
Mirriad is shaping a cup-and-handle-like base, breaking above recent resistance at 0.011p. The next target zone lies between 0.021p and 0.022p by the end of July, near the 50-day moving average and the broadening triangle top. Although the RSI is still below neutral 50, the setup suggests the move is gaining traction, especially if the stock closes above 0.015p after a gap down.
Norman Broadbent: Strong Momentum with Record Updates
Norman Broadbent continues to impress with record updates, gapping up sharply and moving in a stepwise pattern typical of strong momentum plays. Holding above May resistance near 150p, the stock targets 260p by the end of August, offering a compelling upside opportunity.
Satsuma (Formerly TAO Alpha): Flag Pattern Signals Potential Rally
Satsuma is currently forming a flag pattern, with its RSI bouncing off neutral 50 at the end of June. The stock is looking to reach the 18p zone while maintaining support above 8.5p. Investors hope for a repeat of the strong performance seen last month as July unfolds.
Shearwater: Breaking Out After Positive Update
Shearwater is breaking through gap-up day resistance, a strong bullish signal indicating a rerating. The minimum target is 70p, with a longer-term upside near 90p by the end of August, provided the stock stays above the broken June resistance at 54p.
Wishbone Gold: Nearing Key Targets After Strong Rally
Wishbone Gold has hit recent targets at 0.28p and 0.50p, with a high of 0.72p reached today, close to the September peak of 74p. The stock is holding above 6p, eyeing a best-case scenario target of 1p or more by the end of August. The company is gaining attention as a potential “new great gold” player, fueling investor enthusiasm.
Conclusion
Across markets and individual stocks, the technical outlook is predominantly positive with several indices and assets approaching key resistance levels and trend channel tops. Momentum indicators like RSI and moving averages support further upside potential, while critical support levels offer downside protection.
Investors should watch for breakouts above resistance zones, golden cross developments, and confirmation of trend channel breaks to capitalize on these opportunities. Staying informed on company updates and geopolitical developments will also be crucial in navigating this dynamic market environment.
With a mix of blue-chip indices, cryptocurrency, precious metals, and promising stocks, the landscape is ripe for selective plays and strategic positioning as summer progresses.
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.
