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, CT Automotive, Catenai, Cobra, Europa, Fusion, Faron, Hot Rocks, Incanthera, Mosman, Rockfire, and Tiger.
Welcome to an in-depth market update that dives into the latest trends across global indices, cryptocurrencies, precious metals, and select stocks. This analysis offers a comprehensive look at key price movements and technical signals as of early August. Whether you’re tracking the FTSE 100, DAX, Dow, Bitcoin, Ethereum, or specific stocks like CT Automotive and Cobra, this breakdown will equip you with insights to navigate the current market landscape.
Global Indices: Footy 100, DAX, and Dow Analysis
FTSE 100 Outlook
The FTSE 100 is currently hovering near record territory, with a key resistance level identified at 9,240, the top of the red trend channel dating back to late May. The near-term target is to reach this level by the end of August, with an optimistic scenario pushing the index up to 9,400 by the end of September. Achieving this would require some positive market catalysts, but there is no fundamental reason why the market shouldn’t reach these highs.
On the downside, support is expected around the top of last year’s green trend channel, near 9,060. Importantly, the FTSE 100 is not anticipated to drop below 9,000 moving forward, suggesting a relatively stable floor for the index in the near term.
DAX: Regrouping After Last Week’s Setback
The DAX index is attempting a recovery after a significant pullback last week. The immediate challenge is closing the gap at 24,400 on an end-of-day basis. Ideally, the DAX will also surpass the July resistance line within the next couple of weeks, aiming for a best-case target near 25,400 by month-end. This would require a swift gap fill and breakout.
However, caution is warranted as the Relative Strength Index (RSI) remains below the neutral 50 level at 47, indicating a lack of momentum. Sellers might consider taking profits on rallies up to the gap top, especially given the downward trajectory of the 50-day moving average.
Dow Jones: Back in Range but Still Room to Grow
The Dow Jones Industrial Average has re-entered its previous trading range between approximately 43,700 and 45,000 points. While it is trading above 44,000, the index still feels distant from the top of this range and record highs near 45,000.
Similar to the DAX, the RSI remains just below 50, which is a key hurdle for sustained upward movement. On the downside, support is expected around the 50-day moving average near 43,500, which should act as a safety net for the index.
Cryptocurrency Update: Bitcoin and Ethereum Trends
Bitcoin’s Struggle for Momentum
Bitcoin has been somewhat disappointing recently, trading below its previous range floor at approximately $115,100. A close back above this level could spark a potential move toward $130,000, aligning with the top of a rising trend channel that dates back to March.
Current support lies near the $112,000 mark, which also coincides with the 50-day moving average and May resistance. Should Bitcoin break below this support, the next significant floor is at July’s support level around $106,000.
Ethereum: Eyeing Record Levels
Ethereum investors are hopeful for a decoupling from Bitcoin’s price action, aiming for new record highs. Presently, Ethereum is sitting at the top of its old rising trend channel from March, near $3,600. A move beyond this could push prices up to $4,400 by the end of September.
Downside risk appears limited as price action has slowed on declines, with a worst-case scenario targeting the 50-day moving average around $3,000, which gradually rises daily. The recent low near $3,360 may indicate a bottom has been reached.
Gold Market: Testing Key Resistance Levels
Gold remains in a consolidation phase, attempting to break the April resistance at $3,430. Successfully clearing this barrier could open the door to retesting the year’s highs beyond $3,500, with a best-case target near $3,800 by the end of September based on the rising trend channel from April.
Support is currently solid above the $3,220 zone, complemented by a healthy RSI reading of 55 and a rising 50-day moving average, positioning gold well for a potential upside move.
Spotlight on Select Stocks
CT Automotive: Emerging from the Shadows
CT Automotive, a lesser-known stock, has recently surged through its 200-day moving average and is trading within a rising trend channel established since January. The top of this channel at 53 pence is the target for the end of September, provided the stock maintains support above 33 pence on end-of-day closes.
Catenai: Signs of a Rebound
Catenai has shown initial signs of recovery, forming a falling wedge pattern despite a recent dip below its rising 50-day moving average. A breakout above the May resistance line near 0.25 pence could propel the stock back to the mid-30s by the end of August. Maintaining above 0.20 pence and an RSI above 50 will be crucial for sustained strength.
Cobra: Momentum Building
Cobra’s price action looks robust, having filled unfilled gaps to the upside and already hitting a second target around 2.2 pence. The next goal is to reach 3.5 pence by month-end, which aligns with the upper resistance lines from October and January last year.
Europa Oil and Gas: Strong Technical Setup
Europa Oil and Gas has impressed with its recent price movement, breaking through May resistance at 0.72 pence as well as the 200-day moving average. With two unfilled gaps to the upside, the stock could reach the top of its broadening triangle pattern near 1.05 pence by the end of August.
Fusion Antibodies: Targeting 14 Pence
Fusion is currently advancing towards 14 pence by month-end, supported by holding above late July resistance around 10.8 pence. Investors will be watching closely to see if Fusion can maintain this momentum.
Faron Pharmaceuticals: A Wild Card with Potential
Faron Pharmaceuticals has bounced impressively from below its 200-day line at 191 pence, now trading above the 50-day line at 210 pence. Resistance at the top of a rising trend channel from May last year stands near 295 pence, a target for the end of September. The RSI breaking above 50 adds to the bullish case, though the stock remains somewhat unpredictable.
Hot Rocks: Ready to Move
Hot Rocks is bouncing off an uptrend line and has reclaimed its rising 50-day moving average at 1.15 pence. While still a wild card, the best-case scenario points to a rise towards 3.5 pence over the next two to three months, potentially as early as the end of September.
Incanthera: Positive Reversal Signals
Incanthera shares have gapped up recently, completing a bare tripod reversal pattern that often signals a positive turnaround. The RSI has remained above 50 since early July, reinforcing bullish momentum. The launch of Skin Plus Cell on Monday adds fundamental excitement. Resistance at 9 to 12 pence from last November is the immediate target, with a floor near 4.75 pence supported by the 50-day moving average.
Mossman: Stirring to Life
Mossman appears to be awakening from a downtrend, forming a W-shaped turnaround with neckline resistance at 0.027 pence. A breakout above this level could lead to a move toward 0.04 pence by month-end, especially if the stock closes above the 50-day moving average around 0.030 pence.
Rockfire: Golden Cross on the Horizon
Rockfire is showing promising signs, with both its 50-day and 200-day moving averages now rising, signaling a potential golden cross. This technical setup often precedes strong upward price action. Having broken neckline resistance near 0.12 pence, Rockfire could climb to 0.22 pence by the end of September or sooner.
Tiger Royalties: Breaking the Downtrend
Tiger Royalties is making encouraging moves to break its recent downtrend. A close above the June peak and resistance near 1.75 pence could push the shares to 2.1–2.2 pence within weeks. The RSI remains a concern, still below 50, but resolving this would bolster confidence. Support lies at the rising 200-day moving average currently near 1.35 pence.
Conclusion: Navigating Opportunities and Risks
Across global indices, cryptocurrencies, precious metals, and select stocks, the current market environment presents a mix of cautious optimism and technical challenges. Key indices like the FTSE 100, DAX, and Dow are testing important resistance and support levels, while Bitcoin and Ethereum look poised for potential upside if momentum can build.
Gold’s attempt to clear major resistance points to renewed interest in safe-haven assets. Meanwhile, a variety of smaller stocks—from CT Automotive to Tiger Royalties—are showing early signs of strength, with several technical patterns suggesting possible gains in the coming weeks and months.
Investors should watch key technical indicators such as RSI levels, moving averages, and gap fills to gauge momentum and risk. Staying above critical support zones and breaking through resistance lines will be essential for sustained upward moves.
By keeping a close eye on these developments and maintaining disciplined risk management, traders and investors can position themselves to capitalize on emerging opportunities in this dynamic market landscape.
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.
