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, Block, Cirata, Defence, Eco Buildings, Empire Metals, GEO Explorations, Gem Resources, Kefi, Kodal, Newmark, Orosur, Oxford Biodynamics, Shield.
Below you’ll find the key levels, trend lines and targets I’m tracking — the setups I like, the levels I’m watching for support, and the upside targets I think are achievable over the next few weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Macro snapshot: indices and themes
FTSE 100
The FTSE remains comfortably inside a rising trend channel that began in June. The floor of that channel sits around the 9,130 level; as long as we hold above the rising 50-day line (around 9,059), the bullish bias stays intact. The 50- and 200-day moving averages are both rising sharply — a constructive backdrop — and the RSI has bounced back above neutral 50 after dipping in late June. Short-term target: the top of the channel, as high as 9,450 by the end of next month (sooner would be better).
DAX
The DAX looks like it’s found an uptrend line dating back to spring of last year. Immediate support sits near last month’s low around 23,400. Initial resistance is the 50-day line just under 24,100. The RSI remains below neutral 50 (interestingly we’ve had RSI bounces from the mid-30s), which could signal underlying strength despite shallow pullbacks. If we stay above 23,400 I’m looking for the 50-day test first and then a run to the top of the rising channel at roughly 25,600 by the end of next month.
Dow
After a short holiday, the Dow is trying to build support on the right side of 45,000 and is holding above the 50-day line. Treat the 50-day as a trading stop (around 44,500). With that support intact, the path up to about 47,500 by the end of next month is the target.
Cryptocurrencies
Bitcoin
Bitcoin’s been attempting to establish a floor at the lower boundary of its rising trend channel (the channel that started around late February/early March). Price has poked above the resistance line from last month but is struggling to clear the falling 50-day line (115) and keeps running into the neutral RSI 50 level — this marks the fourth recent RSI failure around 50. That pattern raises the risk of a test of the 200-day moving average (101) and the June support, which would be an unhealthy look. Remember: RSI failures around neutral 50 can precede a painful shakeout that weeds out weak hands.
Ethereum
Ethereum is attempting to diverge from Bitcoin’s struggles. It’s inside a neat rising channel that began in early July, with support roughly above 4,300. The constructive scenario targets 5,500 by the end of next month (and maybe sooner). There is resistance around 4,500 so cautious traders should wait for a daily close above that, but the RSI is sitting above neutral (52) which is a positive signal for momentum.
Gold
Gold has been the standout lately — rumours about dollar weakness have helped the metal. My target was 3,800 for the end of next month and we could hit that level as early as the end of this month given current strength. That would put gold well above the previous 3,500 peak.
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.
