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, African Pionee, Bezant Resources, Bluebird Mining Ventures, Coinsilium Group, Haydale Graphene Industries, Mila Resources, RC365 Holding, The Smarter Web Company, Truspine Technologies, TAO Alpha, Wishbone Gold
Market Overview: Major Indices and Commodities
FTSE 100: Holding Steady with Optimistic Outlook
The FTSE 100 remains caught in a tight range between 8,700 and 8,800, with a high today of 8,792. Key technical indicators show a mixed picture: the 5-day and 200-day moving averages are trending slightly upwards, suggesting underlying strength, while the RSI sits just below the neutral 50 mark. Despite this, the glass appears half full, with the FTSE positioned to hold above 8,700 and potentially push towards 9,000 by the end of July. This 9,000 level coincides with the upper boundary of the spring 2024 rising trend channel, marking a significant resistance point to watch.
DAX: Navigating a Rug Pull and Gap Trading
The DAX index experienced a classic “rug pull” down to the 50-day moving average at 23,300, mirroring similar moves seen earlier in the year. Despite this dip, the outlook remains bullish as long as the index stays above this level. The market gapped up yesterday following a gap down earlier in June, a bullish reversal pattern that leaves the gap between 23,400 and 23,300 unfilled. If this holds, the DAX could aim for the top of its rising channel from spring 2023, targeting levels as high as 25,000 by the end of next month.
Spotlight on Bulletin Board Stocks: Opportunities and Trends
African Pioneer: Bullish Gap Reversal
African Pioneer has shown promising signs with an unfolding gap to the upside following a period in a falling trend channel. The shares remain above a recent gap at 0.65p, setting a target of 1p by the end of next month. Notably, a gap down in April was followed by a gap higher, creating a “bear trap” and head-and-shoulders reversal pattern. This setup suggests the bears have been caught off guard, increasing confidence in a sustained rally.
Bezant Resources: Mid-Move Consolidation
Bezant Resources is currently consolidating within a rising trend channel. The shares are supported above the 50-day moving average at 0.026p, with a target price of 0.045p expected by the end of July if the upward momentum continues.
Bluebird Mining Ventures: Encouraging Consolidation
Bluebird Mining Ventures, a company linked to Bitcoin, is showing a mid-move consolidation that looks promising. The current focus is on maintaining levels above the previous target of 1.05p, with a new target of 2.2p by the end of next month.
Coinsilium Group: Recovery After Significant Pullback
Following a dramatic drop from a high of 89p, Coinsilium shares have rebounded above 40p. Yesterday’s low around 30p aligns with prior targets, and any dips near this level are viewed as buying opportunities. Key resistance levels to watch are 50p and 80p, with an end-of-day close above 50p being a positive signal for further gains.
Haydale Graphene Industries: Target Achieved, Eyes on Next Resistance
Haydale has delivered a strong performance, hitting all three or four target levels, culminating at 0.76p. Despite the challenge of surpassing this resistance, the stock appears poised to push higher. The next significant resistance lies around 1.5p, last seen in July 2023, presenting a clear hurdle for further upside.
Mila Resources: Consolidation and Golden Cross
Mila Resources is consolidating near the previous target of 0.85p, with the next target at 0.97p. Having experienced a “golden cross” — a bullish signal where the short-term moving average crosses above the long-term average — the stock is positioned to retest last month’s highs by the end of July, provided it stays above the 0.85p zone.
RC365 Holding: Rising Channel and Key Moving Averages
RC365 remains in a rising price channel, supported by a climbing 50-day moving average. A close above the 200-day line at 1.37p would open the door for a target as high as 2.4p by the end of next month, signaling strong potential for continued upward momentum.
The Smarter Web Company: Navigating Volatility
The Smarter Web Company has seen a dramatic rise of around 2,000%, followed by a pullback that has pleased the bears. Currently trading near 280p, key support lies at 197p from yesterday’s low and previous lows around 240p. The preferred scenario is a return to the rising trend channel near 330p, though dips to support levels could present attractive buying opportunities.
Truspine Technologies: Bitcoin Treasury Addition
Joining the Bitcoin Treasury brigade, Truspine Technologies has reached the top of its channel at 3.25p. The stock aims to push towards 3.75p, the old resistance from June 2024, by the end of next month, with upside potential as long as it remains above recent resistance near 1.3p.
TAO Alpha: Solid Foundations Amid Volatility
TAO Alpha has demonstrated resilience despite earlier spikes and overshoots. The shares found support at the floor of their rising trend channel around 5.7p. A partial or full retracement to retest highs near 26p is possible, with a more immediate rebound target in the 14–15p range seen as a realistic goal in the coming days.
Wishbone Gold: Climbing the Rising Trend Channel
Wishbone Gold is trading within a rising trend channel, supported by a climbing 50-day moving average. The initial target is the 200-day moving average at 0.22p, with an ambitious goal of reaching 0.27p by the end of June. Maintaining levels above 0.15p will be critical to sustaining this bullish trajectory.
Conclusion: Navigating Opportunities with Confidence
As we move through late June, the markets present a mix of challenges and opportunities. Major indices like the FTSE 100, DAX, and Dow show signs of resilience, with technical setups pointing to potential gains in July. Bitcoin remains a key player, poised for further upside if it can break key resistance levels.
On the bulletin board, a diverse group of small-cap stocks offers compelling setups, from gap reversals and consolidations to golden crosses and channel breakouts. Whether it’s African Pioneer’s bear trap reversal or Haydale’s achieved targets, investors have a range of prospects to consider.
Careful attention to support and resistance levels, combined with an understanding of broader market trends, will be essential for those looking to capitalize on these developments. Staying informed and patient will help navigate the volatility and unlock value in these dynamic markets.
Dow Jones: Key Reversal and Strong Support
The Dow has shown resilience, successfully holding the floor of its rising trend channel around 42,000. A key reversal followed by a gap higher signals renewed strength, with further upside expected if the index breaks above the neckline resistance near 43,000. Should this happen, a minimum target of 44,000 by late July is in sight. The 200-day moving average at 42,500 and a double bounce of the RSI at neutral 50 support the bullish case, making the Dow a market to watch closely for continued gains.
Bitcoin: Poised for a Fresh Move Upwards
Contrary to expectations of a sharp surge given institutional buying, Bitcoin has seen a steady but meaningful rally this week. The cryptocurrency is testing its main resistance line at 109,000, with the RSI at a healthy 55, indicating room for a fresh move higher. Should Bitcoin break through 109,000, it could climb towards 125,000, the upper limit of its rising trend channel established in spring 2024. On the downside, support lies at 98,000, coinciding with May’s initial resistance and the channel floor, offering a firm base for the cryptocurrency.
Gold: Struggling to Break Resistance
Gold has faced a tough battle attempting to surpass the 3,400 level, which has so far resisted upward momentum. After bouncing off the 50-day moving average near 3,323, the market closed below this level, increasing the risk of a dip towards 3,250, the support seen in late May. The resistance line from April at 3,430 remains a significant hurdle. With the RSI below neutral 50, caution is advised, as the 3,250 zone could be tested again if selling pressure intensifies.
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.
