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, Boston, Botswana, Boku, Cel AI, Dialight, Gem Resources, Gemfields, Mindflair, Provexis, Quantum Blockchain, Smarter Web, Westminster Group.
Major Market Indices: Charting the Course
FTSE 100 Outlook
The FTSE 100 remains range-bound between 8,700 and 8,800, with a crucial focus on closing above 8,800 by the end of the day. Such a close could trigger a bullish move reaching as high as 1,920 to 1,930 before the month ends. Traders should watch for a potential test of the rising 50-day moving average, currently at 8,681. The RSI indicator sits just above the neutral 50 level, suggesting cautious optimism — the glass is half full rather than half empty.
DAX Performance
The DAX is hovering just above its March resistance and the 50-day line at 23,500. Maintaining this level opens the door to a rally toward the rising trend channel top, ranging from 24,000 to 25,000, possibly by month-end. The RSI reading of 54 confirms a healthy momentum for the index.
Dow Jones Industrial Average: On Track for New Highs
The Dow is showing strength, with the RSI experiencing a “double dip” at the neutral 50 mark — a classic leading indicator for upward moves. The index recently surpassed broken June resistance at 43,200 and is eyeing record highs at 45,000, with an ambitious target of 47,300 by July’s close. This bullish forecast is supported by an impending golden cross between the 50 and 200-day moving averages, expected well before the month ends.
Cryptocurrency and Gold: Stability and Setbacks
Bitcoin: Steady but Watchful
Bitcoin has been surprisingly steady despite significant buying activity from major Bitcoin treasury companies. The key resistance remains near 109,000, a May high that has yet to be convincingly broken. A daily close above this level could propel Bitcoin to the top of its rising trend channel from March 2023, potentially reaching 125,000 by month-end. Conversely, a break below the 50-day line at 106,000 might prompt a retest of the 100,000 mark. The RSI is holding just above 50, but recent failure to breach May resistance tempers enthusiasm.
Gold: Facing a Rug Pull
Gold experienced a sharp pullback following multiple unsuccessful attempts to break through the 3,400 resistance level. Without any major geopolitical catalysts recently, this drop resembles a classic “rug pull,” despite a rally off the open during yesterday’s trading session. The 50-day moving average at 3,333 is a critical level to reclaim to re-enter the rising trend channel established since March. The recent low near 3,250 could mark a potential bear trap rebound. RSI sits at 46 and needs to climb back above 50 to signal renewed strength.
Stock Market Gems: Promising Moves and Targets
Boston: Bullish Breakout
Boston surprised with a sharp rise today ahead of anticipated movements. Previously forming a bull flag near support, it has now broken above April resistance at 0.38. A daily close above the 200-day moving average at 45 would pave the way for a target of 0.72 by the end of the month.
Botwana: Breaking the Fall
Botwana is breaking out of a falling trend channel dating back to spring 2023. The stock is targeting 0.34 by late July, moving above the triangular pattern from August last year. Maintaining support above 0.17 and staying clear of the 50-day line at 0.15 is key to sustaining this momentum.
Boku: Conservative Yet Bullish
Boku continues to edge higher following last week’s bullish breakout above resistance at 195. The conservative price target is 230 by month-end, with the potential for even higher gains if momentum continues.
Cel AI: Navigating After a Major Raise
Cel AI’s chart was shaken by a recent £10 million capital raise, but shares have bounced off the floor of a rising trend channel at 0.25. The stock aims to reach the upper channel boundary near 0.60 by the end of August. A key bullish signal will be a daily close above the second gap resistance at 0.37.
Dialight: Charging Ahead
Dialight delivered a solid update this week, hitting its second target at 195p The ambitious goal now is 280p by the end of August. Staying above 180p is crucial; falling below could signal a pause in the rally.
Gem Resources: Rising on Speculation
Gem Resources is climbing despite no new announcements, suggesting insider optimism. Having broken out of a falling trend channel at 0.3p, the stock looks poised for a move to 0.74p by month-end. Closing above April resistance at 0.48p today would accelerate this advance.
Gemfields: Gap Closed and Targets Set
Gemfields closed a notable price gap at 5.8p and is targeting an initial 7.44p, with a second target of 11p by the end of August — the upper parallel of its rising trend channel.
Mindflair: Gaining Traction
Mindflair is showing promising signs with a double RSI bounce above 50 over the past month. Both 50 and 200-day moving averages are rising in tandem. The stock aims for 1.66p, the old one-year resistance, by month-end. Maintaining support above 1.05p, the initial June resistance, will be important.
Provexis: Broadening Triangle Formation
Provexis is forming a broadening triangle with resistance near 1.1p. Staying above the post-2024 resistance at 0.7p is vital for upward momentum.
Quantum Blockchain: Crypto Buzz Yet to Lift Shares Fully
Despite excitement around crypto and recent final results, Quantum Blockchain shares have yet to rally significantly. The stock has hit its 1.2p target twice and is aiming to fill the gap up to 1.6p by month-end. Support above 1p and an RSI rebound at 50 suggest potential for a V-shaped bull flag breakout.
Smarter Web: Bitcoin Treasury Play
Smarter Web, a favorite Bitcoin treasury play, showed resilience with a strong green candle after recent weakness. The company reportedly holds £38 million in cash, providing a solid foundation. The key resistance to break is 255p, which could open the door to targets between 300p and 350p. Both 50 and 200-day moving averages are trending upward, alongside a healthy RSI.
Westminster Group: Contract Wins Drive Momentum
Westminster Group’s shares have been buoyed by a stream of contract wins, pushing prices to an initial target of 2.75p, which was the day’s high. The next level to watch is 3.5p, with support maintained above the June resistance at 2.5p.
Conclusion: Staying Alert and Optimistic
July’s start shows a blend of caution and opportunity across global indices, cryptocurrencies, precious metals, and selected stocks. Key technical levels and RSI indicators suggest that while some markets and shares are consolidating, others are gearing up for significant moves. Watch for critical daily closes above resistance levels and maintain attention to trend channels and moving averages. With this data-driven outlook, traders and investors can position themselves wisely as the month unfolds.
Stay tuned for further updates and continue tracking these charts closely to capitalize on emerging trends.
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.
