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, Agronomics, Bezant, Celebrus, Defence, Kodal, Metals Exploration, Smarter Web, and Tao.
Market Overview: Indices and Commodities
FTSE 100: Stuck in a Range, Eyeing a Breakout
The FTSE 100 has been treading water within a narrow band between roughly 8800 and 8840 for several days now. The market remains poised for a decisive move, with a close above 8840 potentially signaling a rally toward 9030 by month’s end. On the downside, the 50-day moving average near 8726-8728 acts as strong support, serving as a “rugpull zone” to watch. The RSI currently sits at a healthy 56, indicating room for an upward move, so traders are hoping the breakout happens sooner rather than later.
DAX: Bouncing Above Rising 50-Day Line
The DAX index shows promising signs, having bounced above its rising 50-day moving average—often a leading indicator of upward momentum. With the RSI in the upper 50s, the technical setup suggests an advance toward 25,000 points, potentially as early as the end of July. On the flip side, support sits around June’s lows near 22,300, but ideally, the index remains above 23,600, which corresponds to the 50-day moving average.
Dow Jones: Slight Pullback Near Record Highs
The Dow has experienced a modest pullback, which is typical when approaching record highs. Support is expected near the 44,000 level, with the longer-term trend channel pointing toward a target of 47,600 by the end of next month. A worst-case scenario could see a retest of June’s resistance around 43,100, but current sentiment favors maintaining 44,000 as a solid floor.
Bitcoin: Consolidation Between Key Levels
Bitcoin has been frustratingly slow, caught between resistance near 110 and the 50-day moving average around 106. Despite this, the buying activity from Bitcoin Treasury Strategy companies provides a bullish backdrop. The RSI at 55 supports this view, indicating a potential breakout above 110, with a target as high as 125 possibly achievable by the end of July.
Gold: Struggling Without Geopolitical Catalysts
Gold’s price action has been relatively stagnant, trading around the 50-day moving average and the floor of its channel. Support appears firm near the 3320 zone, while resistance lies at the April high around 3440. The RSI crossing back above the neutral 50 level hints at a possible consolidation phase rather than another sharp drop, though a pullback to 3220 remains a risk if selling pressure returns.
Stock Spotlight: Key Movers and Technical Setups
Agronomics: Strong Breakout Potential
Agronomics is showing signs of a solid breakout at the top of its trading channel, with a target around 10.7p expected by the end of next month or possibly sooner. The momentum here is encouraging for investors looking for early gains.
Bezant: Surging Past Targets
Bezant has been on a remarkable run, already surpassing the 0.045p target earlier than anticipated. The next technical ceiling is the upper parallel of its rising trend channel, aiming as high as 0.075p by the end of next month. This strong upward move is noteworthy and could attract further attention.
Celebrus Technologies: Potential Bear Trap and Bullish Divergence
Celus is a lesser-known stock that has caught attention by gapping off its April lows. This pattern may represent a bear trap or an island reversal, supported by bullish divergence in the RSI—lower lows in price but higher RSI readings compared to April. The critical level to hold is resistance at 160p, with an upside target near 220p, aligned with the broadening triangle pattern from earlier in the year.
Defence Holdings: Rebounding From 50-Day Support
Defence Holdings has bounced nicely off its rising 50-day line around 0.32p. If it stays above this level, a target of 0.48p by the end of July remains on the table, consistent with previous projections.
Kodal Minerals: Fighting Back Above Key Moving Averages
Kodal is showing resilience, climbing from below the 50-day line to test the 200-day moving average. A decisive end-of-day close above the 200-day line could set the stage for a move toward 0.48p, potentially by the end of the month.
Metals Exploration: Eyeing Long-Term Resistance
Metals Exploration boasts an impressive technical chart, with shares aiming for the upper parallel resistance line dating back to 2020. The target price is around 18p, with current support holding firm in the 12 to 12.5p range.
Smarter Web: Consolidation and Resistance Ahead
Smarter Web has been consolidating between roughly 290p and 350p, with an RSI of 57 signaling strength. The key resistance to watch is the line from last week near 330p—breaking above this could trigger a fresh buy signal. Conversely, a drop below 290p might see support tested at the channel floor near 245p.
Tao Alpha: Crypto Play on Fire
Tao Alpha is currently outperforming many competitors in the crypto space, despite some rebranding rumors. Holding above 7.5p, it looks poised to advance toward 17p, potentially by the end of July. The RSI bounce above 50 at the month’s turn lends further confidence to this bullish outlook.
Conclusion: Watching for Breakouts and Key Support Levels
Across the board, we see markets and individual stocks at critical junctures. The FTSE 100, DAX, and Dow are all flirting with important resistance and support zones, with technical indicators suggesting upside potential if breakouts materialize. Bitcoin and gold are in consolidation phases, awaiting fresh catalysts to push them higher.
On the stock front, several names like Agronomics, Bezant, and Tao Alpha are showing strong momentum, while others such as Celus and Kodal present intriguing setups that could surprise traders if their technical patterns play out.
Staying vigilant about these levels and watching for confirmation through volume and closing prices will be key for traders and investors aiming to capitalize on these opportunities in the weeks ahead.
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.
