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, Aptamer, ACG Metals, CapAI, CAP-XX, Diageo, Focurite, Gelion, Gattaca, Oxford Nanopore, Smith & Nephew, Westmount, and YouGov.
Major Indices Overview
FTSE 100: On the Rise Within a Trend Channel
The FTSE 100 has been buzzing lately, bouncing off the floor of its rising trend channel near the 19,300 level. Zak highlights a potential return to the top of this channel from last year, aiming for the 19,060 area, and possibly reaching as high as 19,240 by the end of August. Although global uncertainties like tariffs and geopolitical tensions could impact this trajectory, the current momentum suggests these targets might be achieved sooner than expected.
Should the FTSE stay above the 19,030 zone, there’s room to upgrade the upside target to around 19,400 in the following month.
DAX: Battling Tariff Headwinds
The DAX market experienced volatility due to recent tariff news but is attempting to reclaim its footing above the 50-day moving average, which currently sits at 23,900. Zak points out that a sustained close above this level is critical to push toward the 25,000 mark by month-end — although this remains a stretch given current conditions.
On the downside, solid support exists around 23,000, established in June. A key technical indicator to watch is the RSI, which needs to climb back above 50 to confirm bullish momentum. Until then, caution and patience are advised.
Dow Jones: Signs of Recovery Amid Tariff Setbacks
Like the DAX, the Dow was impacted by tariffs but has rebounded off its 50-day line around 43,800. It’s now back above mid-July support at the same level. Zak emphasizes that staying above 43,800 increases the likelihood of breaking through 45,000 and potentially reaching the top of the rising trend channel near 47,400 by next month.
RSI readings above 50 and a recent gap-close signal add to the positive outlook for the Dow.
Cryptocurrency Market Update
Bitcoin: Building Momentum
Bitcoin’s price action reflects a risk-on sentiment similar to equities. It bounced off May resistance and the 50-day line around 112,000, currently aiming to surpass the July support at 115,000. The RSI, however, remains slightly below 50 at 47, indicating room for growth before a strong bullish run.
If Bitcoin clears these hurdles, it could move toward the top of its rising trend channel from March, targeting around 130,000—likely a September goal unless a sharp catalyst emerges.
Ethereum: Outpacing Bitcoin in the Near Term
Ethereum has shown more near-term liveliness, breaking above the base of its old rising trend channel with a target near 3,560. Beyond that, it could climb as high as 4,400 by next month if it remains above the 3,500 support level.
Notably, Ethereum’s RSI has rebounded past 50, a positive technical signal that has coincided with recent upward moves.
Gold: Eyeing a Breakout
Gold has faced resistance around 1,430, a level that has proven stubborn since April. However, with a rising 50-day moving average, a bounce off the channel floor, and RSI sitting comfortably in the mid-50s, there’s optimism for a breakout.
If gold clears 1,430, it may push toward 1,480 by the end of next month, with a downside floor near 1,320 expected to hold in any pullback.
Spotlight on Selected Stocks
Aptamer Group: Accelerating Uptrend
Aptamer is nearing the top of its channel at 0.52 pence, with potential to reach 0.7 pence by month-end. This level also aligns with support last seen in June 2024. Maintaining above 0.43 pence, recently a resistance level, is key for continued gains.
ACG Metals: Strong Technical Setup
ACG Metals is showing a robust U-shaped turnaround with a handle formation on the right side. Zak’s target is £10 by next month, supported by a rising RSI that has remained at or above 50 since early May. Both 50-day and 200-day moving averages are trending upward, enhancing the bullish case.
Cap AI: News-Driven Surge
Following strong news, Cap AI rallied to 0.63 pence, just below the target low 0.6 pence zone. Remaining above the recent resistance of 0.52 pence could set the stage for a retest of 0.8 pence by month’s end.
CAP-XX: Persistent Momentum
CAP-XX has hit its third target at 0.45 pence, with a possible retracement underway. The next objective is the top of a rising trend channel near 0.6 pence, contingent on closing above 0.45 pence. RSI has stayed above 50 since May, reinforcing the technical strength.
Diageo: Bear Trap Reversal
Diageo presents an interesting technical picture with a bear trap gap reversal and a breakout above the broadening triangle base at £20.06. Zak points to a critical close above the 50-day moving average near £19.20 to confirm this bullish setup.
Focusrite: Musicians’ Favorite on the Rise
Focusrite, well-known among musicians, has broken above its 50-day line at £1.71. The expectation is a move toward £2.15 by next month, supported by an RSI above the neutral 50 level.
Gelion: Post-Interview Momentum
Gelion continues to benefit from recent positive coverage, breaking above resistance at 25 pence with a target of 35 pence before month-end.
Gattaca: Overlooked Opportunity
Gattaca may be flying under the radar but shows promise with an unfilled gap to the upside and a wide rising trend channel base. The target is £1.13 by next month, while maintaining support above 90 pence. Multiple RSI rebounds at 50 earlier this month have foreshadowed this move.
Oxford Nanopore: Small Cap Momentum
Oxford Nanopore is forming a V-shaped bull flag pattern with a recent gap through resistance, indicating a fresh move upward. Zak suggests a target of £2.60 by the end of August, provided the price stays above £1.99 support.
Westmount Energy: Awaiting News
Westmount Energy remains in a holding pattern due to a lack of news. Despite a strong price surge, Zak advises waiting for an RNS update. The near-term target is 2.4 pence, with a more optimistic target of 3.2 pence based on historical resistance, contingent on holding above 1.5 pence support.
Smith & Nephew: Breaking Out of the Range
Smith & Nephew has broken out of its range, with a rising trend channel pointing to a potential rise to £14.60 by the end of the month. The stock remains supported above £12.50, a key resistance level from August last year.
YouGov: Strong Update Spurs Rally
YouGov’s recent update has energized the stock, triggering a bear trap reversal and a gap up. The target is £4.14, the top of the range and channel, as long as it stays above the 50-day line near £3.40.
Conclusion
Zak Mir’s technical analysis paints an optimistic yet cautious picture across a range of markets and stocks. The FTSE 100, DAX, and Dow show potential for gains but require key technical confirmations, while Bitcoin and Ethereum are poised for further upside with some RSI and resistance levels to clear. Gold looks ready for a breakout after persistent resistance.
On the stock front, several companies including Optima, ACG Metals, and Cap AI exhibit strong technical patterns that could reward patient investors. Meanwhile, stocks like Diageo and Smith & Nephew are breaking out of important ranges, adding to the excitement.
As always, staying above key support levels and monitoring RSI indicators will be critical for anticipating the next moves. Keep an eye on these levels as the month progresses for potential trading opportunities.
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.
