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, Anemoi International, Bluebird Mining Ventures, Coinsilium Group, Chesterfield Resources, Defence Holdings, Distil, Hot Rocks Investments, Helium Ventures, KEFI Gold and Copper, Metals One, Quantum Blockchain Technologies, The Smarter Web Company, Vault Ventures, Tap Global
Global Indices Overview
FTSE 100
The FTSE 100 is currently behaving as expected, finding strong support around the 8,800 level. Today’s low hit 8,793, which is just below that support but still within a stable range between 8,800 and 8,900. Zak anticipates the market to climb towards the upper boundary of the rising trend channel at approximately 9,030 by the end of July. However, caution is advised if the FTSE dips below 8,800, as it may test the 8,700 level. The worst-case scenario involves a retest of the 50-day moving average, currently sitting at 8,557. Despite geopolitical turmoil, the outlook remains cautiously optimistic with 8,700 likely the floor for now.
DAX
The German DAX index has faced challenges, slipping below the old March resistance at 23,500. The index recently bounced above its 50-day moving average near 23,000, which is a positive sign. Zak highlights the possibility of a dip towards the April-May gap around 22,800. To regain upward momentum, the DAX needs an end-of-day close above 23,500, which could then propel it towards a channel top target of 24,800 by the end of next month.
Dow Jones Industrial Average
The Dow remains trapped near the bottom of its rising trend channel dating back to May last year, with key support around 42,000. A break above 43,000 is crucial to push towards the next target of 44,000 by the end of July. On the downside, the 50-day moving average at 41,300 could serve as support or a potential “rugpull” point if the market falters.
Key Commodities and Cryptocurrencies
Bitcoin
Bitcoin continues to attract treasury buying from companies worldwide, which is a bullish fundamental backdrop. Technically, Bitcoin is bouncing off its 50-day moving average for the third time recently, with the 50-day line trending upwards. While the price remains above this, Zak expects a move back to 112,000 sats, with a best-case scenario pushing to 124,000 by the end of July. A resistance break around 109,000 sats would pave the way for this rally. However, the Relative Strength Index (RSI) remains just below 50 at 48, indicating a slight negative bias that traders should watch.
Gold
Gold continues to wrestle with the critical 3,400 level, having experienced a bull trap above this price. Zak stresses the importance of an end-of-day close above 3,400 to target a rise towards 3,800 by the end of next month. On the downside, the 50-day moving average at 3,308 offers potential support. Overall, gold is expected to stay within its rising trend channel, but the exact direction depends on upcoming price action.
Small Caps Spotlight: Bulletin Board Heroes
Anemoi International
After years in the doldrums, Anemoi is showing promising signs. The shares have broken through major resistance from 2022 at 1.8p and are now eyeing the 3.75p level, an old support zone from 2021. Previous targets of 0.9p and 1.2p were surpassed, signaling strong momentum and potential for further gains.
Bluebird Mining Ventures
Bluebird is benefitting from Bitcoin-related interest, climbing towards the top of its channel at 0.8p. With the shares holding above the 200-day moving average at 66p, Zak forecasts a push to 1.1p by the end of next month.
Coinsilium Group
Coinsilium remains under close watch. The shares have been holding above old resistance around 34p and are now testing a red resistance line just above 50p, with targets as high as 51p. Zak notes that previous modest targets, such as 5p when the shares were between 2-3p, are now distant history given the stock’s strong performance.
Chesterfield Resources
Chesterfield is in a consolidation phase between 0.55p and 0.85p. Zak is looking for an end-of-day close outside this range, which could propel the stock up to 1.1p by the end of July, especially if it remains above the 0.7p support area.
Defence Holdings
After a period of regrouping, Defence Holdings is showing signs of a potential turnaround. Support is seen near 35p, with an upside target of 77.2p, one of Zak’s previous key price targets. Timing remains tricky, as rebounds can sometimes be temporary.
Distil
Distil is approaching a second target at 38p, with a further aim of 55p, which was resistance during last year’s decline. Zak is watching to see if these targets can be realized by the end of next month.
Hot Rocks Investments
Hot Rocks has become one of the hottest names on the Aquis market. With rising 50-day and 200-day moving averages, the stock is eyeing a breakout from a triangle pattern. Staying above 0.45p could see the shares surge to 1p by the end of July, with potential for even higher gains.
Helium Ventures
Helium Ventures has delivered a spectacular rally, nearly hitting the “pie in the sky” target of 32p, which was previously considered ambitious. The shares currently hold above the gap floor at 20p, with a strong chance of reaching that peak in the coming days.
KEFI Gold and Copper
KEFI is showing signs of a turnaround, bouncing off the floor of its rising trend channel. Although the price briefly dipped below 0.5p, Zak remains hopeful for a move towards 6p within the next couple of weeks, a level that was resistance in late May and early June.
Metals One
Metals One has successfully reclaimed a key resistance line, now eyeing the 50-day moving average at 27p. The shares are rebounding well, maintaining support above 16p, with upside potential in the near term.
Quantum Blockchain Technologies
Quantum has broken out of a triangle pattern, as anticipated. The shares have a gap to fill up to 1.6p, a target Zak expects to reach by the end of next month, provided the stock remains above recent resistance at 88p.
The Smarter Web Company
This stock is the standout performer of the year, pushing towards the top of its channel at approximately £4.70. The shares opened at £4.15 today, and Zak anticipates a move to £4.60 or £4.70 as long as the price stays above the £4 support level.
Vault Ventures
Vault is currently consolidating nicely, with a golden cross potentially on the horizon. Zak’s optimistic target is 0.15p, contingent on an end-of-day close above recent resistance at 0.06p. There are no clear obstacles between 0.06p and 0.15p on the chart, making this a promising setup.
Tap Global
Finally, Tap Global looks ready to make a move, despite being outside the hot Aquis market spotlight. Zak forecasts a near-term target of 3.5p by the end of this month, with a longer-term aim of 7-8p by the end of next month if the momentum continues. Holding above 2.2p, the floor of the February gap, will be crucial for this rally.
Conclusion
Zak Mir’s detailed chart analysis offers valuable insights into a range of markets and small-cap stocks, highlighting both opportunities and risks. From the steady resilience of global indices like the FTSE 100 and DAX to the explosive potential in small caps such as Helium Ventures and Hot Rocks Investments, traders have plenty to watch in the coming weeks.
Whether you’re focused on traditional equities, precious metals, or cryptocurrencies like Bitcoin, keeping an eye on key support levels and trend channels will be essential. As always, while the technical outlook is encouraging in many cases, caution is warranted given the broader geopolitical and economic uncertainties.
Stay tuned for more updates as the market evolves and new opportunities emerge.
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.
