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, Aura, Catenai, Cordel, Dialight, Empire Metals, Gear4music, Great Southern, Valereum, WeCap, Xtract.
Major Indices: Technical Trends and Key Levels
FTSE 100: Eyeing 8,800 and Beyond
The FTSE 100 is currently battling to reclaim the 8,800 level amid a backdrop of geopolitical uncertainty, including a questionable ceasefire in the Middle East. A close above 8,800 at the end of the day would be a strong signal for a potential rally towards the upper boundary of the rising trend channel established since March last year, targeting levels near 9,020.
On the downside, support remains firm around the late May low of 8,700, with the 50-day moving average providing additional cushion at 8,617. The RSI has rebounded to a neutral 50, suggesting that technically, the market is poised for an upward move if conditions remain favorable.
DAX: Bear Trap and Rebound in Play
The DAX has experienced a textbook 50-day moving average rebound combined with a bear trap island reversal, a strong bullish indicator especially when near recent highs. Key resistance to watch is the 23,500 level, a former March resistance point. A sustained close above this, alongside the RSI climbing above 50 to 52, could pave the way for a push towards the channel top of 24,800 by the end of next month.
Support remains anchored at the 50-day line near 23,100, a critical level to maintain bullish momentum.
Dow Jones: Holding the Rising Trend Channel
The Dow is defending the floor of its rising trend channel, approximately at 42,000. A key reversal to the upside was observed recently, but the market needs to break through the 43,000 neckline resistance—level that has held since March—to target 44,000 by the end of July.
Both the 50-day and 200-day moving averages are trending upward, hinting at an impending golden cross within the next few weeks, which would be a strong bullish signal. The RSI has also demonstrated multiple rebounds at the neutral 50 level, reinforcing a cautiously optimistic outlook as long as the index stays above 42,000.
Cryptocurrency and Commodities Outlook
Bitcoin: Struggling to Break Out
Despite widespread corporate treasury interest, Bitcoin remains trapped below the resistance of 109,000 within a falling trend channel. A decisive end-of-day close above this level is necessary to unlock a potential rally towards 125,000, aligning with the rising trend channel from March last year.
On the downside, the 200-day moving average around 96,000 offers critical support. The RSI recently nudged above 50, suggesting that this week could be pivotal for Bitcoin to gain traction.
Gold: Testing Support and Eyeing New Highs
Gold is currently flirting with the floor of its rising trend channel dating back to March, positioned just above the 50-day moving average at 3,320. The key resistance to watch is 3,400, with a breakout there potentially driving prices up to 3,800 by the end of next month.
However, consistent end-of-day closes above 3,400 are needed before confidently expecting a move into the upper 3,000s range.
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.
