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, Bluebird, Boku, Coinsilium, Hamak, Kefi, Mast, Made Tech, Poolbeg, Roadside, Smarter Web, Solvonis, United Oil & Gas, Wishbone.
Major Market Indices: Stability and Potential Breakouts
FTSE 100: Range-Bound but Poised for a Breakout
The FTSE 100 has been trading within a somewhat narrow range between 8,700 and 8,800 for several days, a pattern observed since late May. While this sideways movement suggests some consolidation, the risk of a test of the 50-day moving average—currently around 8,640 to 8,648—remains a key factor to watch.
However, maintaining levels above 8,700 keeps the market in a relatively bullish zone. A breakout above 8,800 could propel the FTSE towards 9,000 by the end of next month. The Relative Strength Index (RSI) is currently below the neutral 50 mark, which heightens the possibility of testing the 50-day line, though such tests have historically led to upward moves, as seen recently in the DAX.
DAX: Holding Strong with Encouraging Signals
The DAX index has demonstrated resilience, maintaining a gap that has yet to be filled—a classic sign of strength. The market is currently holding above the old March resistance level of 23,500, with a target of 24,900 by the end of next month. The RSI hovering just above neutral 50 adds a positive spin to the outlook, reinforcing the potential for continued gains within the established channel.
Dow Jones: Signs of Strength Amidst Resistance
While strength has been sporadic in the Dow Jones recently, it is currently attempting to overcome the March resistance level at 43,000. A consistent end-of-day close above this level could open the door to a target of 44,000, possibly by mid-July. The RSI has bounced several times at neutral 50 since last month, suggesting a “glass half full” scenario.
Additionally, both the 50-day and 200-day moving averages are trending upwards, and the Dow has bounced off the floor of its rising May trend channel at 42,000. The recent gap higher from Tuesday further supports this upward momentum.
Cryptocurrency Spotlight: Bitcoin’s Recovery and Upside Potential
Bitcoin, despite widespread adoption of Bitcoin treasury strategies by companies, has seen a modest recovery following a dip below 100,000. Both the 50-day and 200-day moving averages are trending upwards, indicating a strengthening trend.
The key resistance to watch lies just above 109,500. Breaking this level could unleash significant upside momentum, with a potential target of 125,000 by the end of next month. Such a move would likely energize companies involved in Bitcoin treasury strategies and the broader crypto market.
Gold: Testing Key Levels Amid Uncertainty
Gold has been testing its 50-day moving average around the 3,330 mark, as previously anticipated. Holding above the lows from Tuesday at approximately 3,295 would maintain a positive outlook, with a target of 3,400 and a best-case scenario of 3,800 by month-end.
However, the RSI remains below neutral 50, reflecting some negative momentum and signaling a risk of further testing of the 50-day line. Investors should watch these levels closely for signs of either a rebound or further weakness.
Stock Market Highlights: Promising Moves and Key Levels to Watch
Bluebird Mining: Early Signs of Breakout
Bluebird Mining recently spiked towards the 2p level, with a near-term target of 2.2p expected by the end of next month. The 50-day and 200-day moving averages are rising and approaching a crossover, which could signal further strength. Maintaining above resistance at 1.46p—the high of a recent session—is crucial for continued upward momentum.
Boku: Strong Accumulation and Upward Channel
Boku is approaching resistance near 195p, with a potential breakout target of 230p by the end of next month. The stock has experienced a golden cross recently, with moving averages crossing to signal bullish momentum. Its RSI has remained above neutral 50 since late April, indicating positive accumulation within a rising trend channel dating back to mid-2022.
Coinsilium: Navigating Volatility
Coinsilium has experienced a rocky ride, falling below the 30p zone and dipping towards 20p, a previous temporary target. The best short-term hope lies in closing above 30p to target 50p. The stock’s recent high of 41.5p shows some recovery but sustained strength is needed to confirm a turnaround.
Hamak: Base Formation and Uptrend in Play
Hamak shares have performed well recently, pushing above the previous target of 0.8p. The base seems to be forming around 0.5p, supported by a rising trend channel since November. Although the RSI has struggled to break above neutral 50 consistently, a return above this level could drive the price to 6p or even 7.5p later in the summer. It’s vital to avoid end-of-day closes below 0.5p to maintain this positive outlook.
Mast: Rebound and Bull Flag Formation
Mast has shown a strong rebound, forming a V-shaped bull flag. A breakout with an end-of-day close above 1.28p could target 1.6p, which was the resistance level back in November 2023. This sets the stage for a near-term rally if momentum continues.
Made Tech: Riding a Rising Channel
Made Tech has gapped up to new highs within a rising trend channel established since summer 2023. The top of this channel points to around 45p by the end of next month, with support holding above 30p. This steady uptrend signals strength and potential for further gains.
Poolbeg: Building Momentum
Poolbeg shows signs of consolidation and state-building, with a rising 50-day moving average near recent lows. The RSI also displays an upward trend. A retest of May resistance at around 4.7p is anticipated by the end of next month or sooner.
Roadside Real Estate: Nearing Targets
Roadside Real Estate was forecasted to reach 55p by the end of next month and is currently trading around 51p. The rising trend channel suggests a target of 57p to 58p is achievable while maintaining support above the recent gap floor at 46p.
Smarter Web: Volatility and Support Levels
Smarter Web has been the stock of the moment, albeit with volatility. After an overshoot to 1.97p, the stock has found support around 240p, despite a recent fundraise. The 250p level appears to be a crucial overshoot zone, with a possible target of 340p within the next couple of weeks. Monitoring the 240p support level will be key to assessing future moves.
Solvonis: Bullish Signals Emerging
Solvonis is showing bullish signs with support above rising 50-day and 200-day moving averages, hinting at an impending golden cross. The RSI has bounced twice above neutral 50, reinforcing strength. The top of the rising trend channel, dating back to October, suggests a target of 28p by the end of next month.
United Oil & Gas (UG): Recovering from Setbacks
UG is attempting to regain footing after a recent setback. It found support near old resistance at 0.16p and is bouncing back. With a recent golden cross and an RSI rebound above neutral 50, the stock could reach 0.3p by the end of next month.
Wishbone: Positive Momentum Building
Wishbone appears to be getting its act together, supported by a rising trend channel and 50-day moving average. The target is 0.27p by the end of next month, bolstered by a double RSI bounce above neutral 0.50. This improved technical setup offers a more optimistic outlook than seen in recent months.
Conclusion: Navigating Opportunities and Risks
Markets are showing a mixture of consolidation and promising breakout potential across indices, cryptocurrencies, and select stocks. Key levels such as the FTSE’s 8,800 resistance, Bitcoin’s 109,500 barrier, and various stock-specific targets provide clear markers for traders and investors to watch.
Technical indicators like the RSI and moving averages are instrumental in assessing momentum and potential reversals. While some assets face risks of testing support levels, others are building strong foundations for upward moves.
Keeping an eye on these developments and maintaining disciplined entry and exit strategies will be essential in capitalizing on the evolving market landscape.
Stay tuned for further updates and analysis to help you navigate the exciting world of trading and investment.
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.
