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, Blencowe, B90, CAP-XX, Catenai, Futura, First Class, Genflow, Gfinity, Hamak, Harena, Hemogenyx, Solvonis, Surface Transforms, Tissue Regenix.
Major Market Indices: FTSE 100, DAX, and Dow
FTSE 100
The FTSE 100 is currently testing the upper boundary of a green rising trend channel that dates back to spring last year. Zak highlights the importance of the 9,050 level as a breakthrough point, with a bullish target of 9,220 projected by the end of August. So far, the index has climbed to 9,025, showing solid momentum.
The relative strength index (RSI) sits just below 66, indicating modest strength and healthy consolidation above June’s previous resistance. The market remains resilient, especially as it holds well above the 50-day moving average near 8,915. Zak cautions that external shocks—such as tariff escalations or geopolitical risks—could trigger a pullback toward the 8,813 level, but overall the outlook is positive, reminiscent of the strong performance seen from January to March this year.
DAX
The DAX has shown steady price action, currently holding just above the 50-day line at 23,900. Zak notes that maintaining this level is crucial for the index to reach the 25,100 mark by month-end. The RSI remains above the neutral 50 threshold, signaling potential for a sustained move upward, although a couple of strong trading days may be needed to reignite momentum. Importantly, any level above the old March resistance at 23,500 is considered a win, given the current macroeconomic challenges.
Dow Jones Industrial Average
The Dow remains range-bound between 44,000 and 45,000, forming a classic flag pattern. Zak pinpoints yesterday’s resistance at 44,600 as a key level to break for a potential rally towards the rising trend channel’s upper target between 46,800 and 47,500 by the end of next month. The RSI at 59 suggests a healthy setup for a move higher, but patience is advised until there’s an end-of-day close above that July resistance.
Cryptocurrency Market: Bitcoin and Ethereum
Bitcoin
Bitcoin is currently finding support around 115,000, which also marks the floor of a red rising trend channel. Zak is optimistic about a move to the channel’s upper boundary at 127,000 by the end of July, although he notes that this target may now be slightly ambitious. Looking further ahead, an acceleration toward 140,000 or higher is possible through August and September if Bitcoin can break above 127,000.
On the downside, the critical support level is the previous May high of 112,000. Holding above this level will be important to maintain bullish momentum.
Ethereum
Ethereum has been volatile, experiencing a bull trap after briefly breaking above the January resistance at 3,750. Zak stresses the importance of closing back above this level to confirm strength and target 4,260, which aligns with the upper parallel of the rising trend channel established in March. Support is expected near 3,480, the top of the lower channel, which could provide a floor if a pullback continues.
Gold: Preparing for a New Leg Up
Gold has been consolidating for the past three months, but signs point to a new leg higher. Zak highlights the key breakout level at 3,430, with a potential surge to 3,800 by the end of August if gold closes above this on a daily basis. The RSI has bounced several times near the 50 level, reinforcing the idea that momentum is building. Both the 50-day and 200-day moving averages are trending upwards.
The downside risk involves a drop toward the channel floor around 3,300, but overall, gold looks poised for an upward move—provided it remains above key support levels.
Bulletin Board Stocks: Key Movers and Technical Setups
Zak reviews a selection of smaller stocks showing promising technical patterns and potential breakouts. Here are some highlights:
Blencowe
Blencowe is finally attracting attention with a bear trap island reversal pattern. After gapping down to new lows in April and May, the stock gapped up at the end of June and has since shown a sideways breakout. Zak targets a minimum price of 4.75p, with a best-case scenario of 6p next month, assuming it stays above the 200-day moving average at 3.75p.
B90
B90 has broken above its 200-day moving average for the first time since last November, a bullish sign for this often overlooked stock. With a positive RSI divergence—lower lows in price but higher RSI readings—Zak expects a move toward 5p or higher by the end of August.
CAP-XX
CAP-XX is showing strong signs of delivering on its potential, having broken out of a V-shaped bull flag above 0.31p. An end-of-day close above this level could propel the stock to 0.45p by next month. The RSI is rebounding from 0.50, adding confidence to the upside case.
Katana
Katana has been testing support levels and now seems to be stabilizing around its 200-day moving average near 0.25p. Recent price action shows a bullish divergence in RSI despite lower prices, suggesting a rebound is possible. The next target is the 50-day moving average at 0.36p.
Futura
Futura shares surged earlier this month, hitting the top of a rising trend channel at about 15p. After a recent gap up, Zak forecasts a near-term target of 15.5p with a best-case scenario reaching 19-20p by the end of next month. Maintaining above 10p is crucial for this outlook.
First Class Metals
First Class Metals is finding support above its rising 50-day line at roughly 1.96p. Zak expects a retest of 3.5p, the top of a triangle dating back to last October. The RSI has been steady above 50 since last month, reinforcing the bullish setup.
Genflow
Genflow has surprised with a strong bounce after hitting new lows. It has reclaimed the 50-day moving average near 8p, with a potential target of 11.5p by the end of August. A bullish RSI divergence supports this view, but confirmation requires several daily closes above the 50-day line.
Gfinity
Gfinity bounced off the floor of its rising trend channel and remains above its 50-day average. Breaking above the February trend line around 0.08p could open the door to a remarkable move up to 0.15p by late August or September.
Hamak
Hamak has been trading near the top of its range and the upper parallel of its rising trend channel. The best-case target is 6.5p, provided the stock stays above recent support at 4.25p. Currently, it appears a bit overstretched, but above 4p, the outlook remains positive.
Harena Resources
Harina broke out of a falling wedge around 1.1p and surpassed its 50-day moving average. Zak points to a target of 2.1p, driven by strong interest in rare earths. Recent impressive gap-ups support this bullish momentum.
Hemogenyx
Hemogenyx shares jumped 15% recently, shaking off a history of fundraising concerns. The stock formed a bear trap island reversal with a gap down in June followed by a gap up this week. Zak targets a minimum of 1.75p and a best-case of 2.8p by next month, ideally closing above the 50-day line for confirmation.
S-Ventures
S-Ventures released a positive RNS but has pulled back to its old target of 0.29p. Holding above this level is key for a move toward 0.45p, a resistance level from last year. The RSI remains above 0.50, indicating some underlying strength.
Surface Transforms
Despite a surprising RNS, Surface Transforms was already showing a promising chart. The initial target is 0.60p, with a further upside toward 1.80p by the end of next month. Maintaining above the June peak around 1.13p is vital for this run.
Tissue Regenix
Tissue Regenix has broken out of a falling trend channel and is trading above its rising 50-day moving average at 30.5p. Zak expects an easy target of 45p by next month, supported by a bullish RSI trend and consistent daily price strength.
Conclusion
Zak Mir’s latest market and stock analysis paints an encouraging picture across several fronts. Major indices like the FTSE 100, DAX, and Dow show promising setups for further gains if key resistance levels are breached. Cryptocurrencies remain in consolidation but with clear upside targets on the horizon. Gold looks ready to resume its upward march after a lengthy pause.
On the bulletin board front, several stocks are exhibiting technical patterns that could lead to significant moves, with bullish divergences and key moving averages providing support. As always, maintaining discipline around support and resistance levels will be critical for traders and investors looking to capitalize on these opportunities.
Stay tuned for more updates as the markets evolve.
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.
