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,
Market Overview: Indices and Cryptocurrencies
FTSE 100: Testing the Channel Tops
The FTSE 100 has performed in line with expectations, reaching the upper boundary of a long-term rising trend channel that began in spring last year. The index recently touched around 9,050, surpassing the July resistance level of 9,020 and edging closer to the channel’s top near 9,040. If it maintains this momentum, the FTSE could push as high as 9,240 by the end of August, aligned with the red May resistance line. However, a drop back below 8,920—the floor of the channel—would delay this bullish outlook.
DAX: Holding Above the 50-Day Line
The DAX index, impacted somewhat by tariff concerns in the EU, has recently bounced off its 50-day moving average—a key support level last tested at the end of June. This rebound is supported by an RSI (Relative Strength Index) recovery above 50, signaling potential strength. The top of the channel is around 25,200, mirroring the FTSE’s rising trend channel. While reaching this level by the end of July may be optimistic, the DAX is poised to finish the month on a positive note if it holds above 23,900.
Dow Jones: Breaking Out of the Mini Flag
The Dow Jones is currently attempting to break out of a mini flag formation—a short-term negative trend channel. The critical resistance to overcome is 44,600, with a successful close above this level potentially ushering in a move toward 47,400 by the end of August. The RSI has bounced back to 61, indicating bullish momentum, and a recent hammer candlestick pattern adds to the optimism. Holding above the 44,000 support zone remains crucial for this scenario.
Bitcoin and Ethereum: Consolidation and Breakouts
Bitcoin is in a mid-move consolidation phase, currently based around 115. A decisive end-of-day close above 121 would confirm strength, with the potential to reach the upper trend channel near 127,000 by the end of July or early August. The longer-term target is 143,000, aligned with a rising trend channel from April. While the RSI has slightly pulled back, it remains in a safe zone. The downside risk involves retesting the May resistance level at 112.
Ethereum has joined the major markets spotlight after breaking through an initial target of 3,420. The next key objective lies at the upper parallel of its rising trend channel from March, near 4,300, expected by the end of August if it stays above 3,420.
Gold: Signs of Strength
Gold’s outlook has brightened significantly after breaking above its April resistance line at 3,430. The metal is eyeing a climb to 3,800 by the end of August. Recent RSI behavior shows a double bounce off the neutral 50 level, supported by a rising 50-day moving average at 3,331. Holding above this moving average is essential for an accelerated move higher.
Stock Spotlight: Promising Moves and Updates
CPPGroup: Strong Momentum and Payout Excitement
CPP has been a standout stock recently, buoyed by a substantial £21 million payout announcement. The shares have already gapped through the initial target of 140 pence, with a new target set near 180 pence by the end of August. The stock’s rising trend channel and recent gaps to the upside suggest continued investor enthusiasm.
CAP-XX: Filling the Gap
CAP-XX displayed a positive gap to the upside recently and is moving toward the one-year resistance level of 0.45 pence. Staying above the initial July resistance at 0.31 pence is key to sustaining this momentum.
Empyrean: Holding Gains Near the 200-Day Line
Empyrean shares have held firm following a significant rally on July 17th, experiencing only a mild pullback. Currently trading near the 200-day moving average, a close above this line could push the stock toward 0.20 pence by the end of August. Maintaining support above 0.08 pence remains important.
Fusion Antibodies (FAB): Quiet but Bullish Breakout
Fusion Antibodies has broken out strongly with no recent news to explain the move, aside from some director buying earlier in July. The stock is advancing toward the top of its long-term channel from September, aiming for 11 pence by the end of August. This level coincides with the 2025 resistance, with recent resistance around 7-12 pence now acting as support.
Guardian Metal: Long-Term Uptrend Remains Intact
Guardian Metal’s impressive run began with a breakout in January last year, fueled by two unfilled gaps to the upside—classic buy signals. Since then, the stock has maintained a very strong uptrend, recently surpassing last month’s resistance at 61 pence. The next target lies around 80 pence by the end of August, based on a resistance line projected from late 2023. The RSI’s rebound above the neutral 50 level further supports this positive outlook.
Itaconix: Well-Received Update and Rising Targets
Itaconix delivered a very positive update recently, with the stock trending toward a target of 148 pence, potentially reaching 184 pence by September. Staying above the 200-day moving average at 126 pence is critical for continued upward momentum.
Orosur Mining: Gapping Higher and Eyeing Channel Tops
Orosur Mining has experienced two upward gaps this month, signaling strong buying interest. The stock aims for the top of its channel near 17 pence by the end of August or sooner. Key supports include the 50-day moving average around 8.75 pence, with a preference to stay above 10 pence to maintain bullish momentum.
Shield Therapeutics: Strong Update and Channel Breakout
Shield Therapeutics reported another robust update, with the stock targeting the top of its channel near 6.75 pence. The crucial support level is the initial July resistance at 3.75 pence, which the stock needs to hold to continue climbing.
Skillcast Group: Steep Rising Trend and Impressive Strength
Skillcast is demonstrating a powerful chart setup characterized by a steep rising trend channel. The stock is on track for a target of 75 pence by the end of August, supported by a strong “vertical, sideways, vertical” price pattern—often indicative of robust momentum. The shares are comfortably above both rising 50-day and 200-day moving averages, earning a near-perfect technical strength rating.
Conclusion
The current market landscape reveals promising signals across major indices, cryptocurrencies, and a diverse set of stocks. The FTSE 100, DAX, and Dow are all positioned for potential gains if key resistance levels hold, while Bitcoin and Ethereum continue to consolidate with a bullish bias. Gold’s recent breakout adds a layer of diversification and safety amid market fluctuations.
On the stock front, several companies are showing strong technical patterns and positive news catalysts. From CPP’s significant payout to Fusion Antibodies’ breakout and Guardian Metal’s sustained uptrend, the bulletin board heroes are alive with opportunity. Careful attention to key support and resistance levels will be crucial for investors looking to capitalize on these trends through the end of summer and into early autumn.
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.
