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 Pioneer, Argo Blockchain, Coinsilium, Empire Metals, Guardian Metal, Invinity, Microlise, Rockfire, Sunrise, Solvonis, Thor Energy, Videndum.
Global Market Indices: Trends and Targets
FTSE 100
The FTSE 100 is currently navigating a rising trend channel, having approached the upper boundary around 9,030. Despite recent tariff uncertainties, there remains optimism that support will hold near the channel’s floor at approximately 8,870. The best-case scenario suggests a climb to the channel’s top, potentially reaching 9,220 by the end of next month. On the downside, the key support to watch is the 50-day moving average near 8,755.
DAX Performance
Similar to the FTSE, the DAX index is trading within a defined range between its rising trend channel’s peak near 25,000 and the 50-day moving average around 23,800. Sustained declines below this moving average are not expected. The current positioning hints at potential for a fresh upward move, reinforcing a cautiously optimistic outlook.
Dow Jones Industrial Average
The Dow is in a phase of mid-move consolidation, with an eagerly awaited golden cross between the 50-day and 200-day moving averages just days away. Holding above the previous March resistance of 44,000 is crucial, with a target of 47,400 projected by the end of next month. In the event of a pullback, support levels to monitor include the June resistance at 43,100 and the moving averages near 42,700.
Cryptocurrency and Commodities Outlook
Bitcoin
Bitcoin has broken free from a two-month logjam, surging past the $110,000 resistance level, a move fueled by increasing corporate adoption and integration into business strategies. Both the 50-day and 200-day moving averages are trending upwards, supporting a bullish case. The next target lies at the upper boundary of its channel around $126,000, potentially achievable by month-end.
Gold
Gold has shown some hesitation lately but remains within a broadening rising trend channel originating from April. A significant resistance level to watch is $3,430, with the possibility of reaching $3,800 by the end of next month if momentum picks up. The Relative Strength Index (RSI) currently sits just below neutral at 49, leaving room for a potential retest of support near $3,230, which has held since May.
Spotlight on Select Stocks
African Pioneer
African Pioneer has broken out of its falling trend channel, closing just above the penny mark. The recent issuance of a mining license for the Enombo copper-gold project has provided a boost, positioning the stock for a potential rise to 1.75 pence by the end of next month.
Argo Blockchain
Once a leader during the Bitcoin rally of 2020-2021, Argo Blockchain is currently battling for survival. If it can hold above the floor of its falling trend channel (around 1.4 pence), the stock could aim for the 200-day moving average near 4.75 pence. A drop below the channel floor would be a negative signal, but recent recovery from below one penny is encouraging.
Coinsilium
Coinsilium is showing signs of revival following positive commentary from the company chairman and increased capacity to purchase Bitcoin. Maintaining support above 25 pence, the stock could target the top of its rising trend channel near 42 pence by month-end. The RSI has climbed back above the neutral 50 level, indicating renewed strength.
Empire Metals
Empire Metals has enjoyed one of the strongest recent uptrends, hitting multiple targets including 11 pence, 16 pence, and 23 pence. The current consolidation between 20.5 pence and 30 pence appears to be a mid-move pause, with a potential breakout to 33 pence and even as high as 38 pence by the end of next month, provided it remains above the 25 pence zone.
Guardian Metal Resources
Guardian Metal Resources has surpassed optimistic targets around 53 pence and is off to a strong start in July. Notably, the stock experienced a bear trap island reversal—a powerful bullish signal—pointing to a potential rise to 80 pence by the end of next month or possibly sooner. This target is aligned with resistance projections from late 2023.
Invinity Energy
Invinity recently broke through an ambitious triangle target at 22 pence. The stock’s strong “step fashion” pattern—rising vertically then moving sideways—signals robust momentum. Remaining above 23 pence supports an upside target near 32 pence by month’s end.
Rockfire Resources
Rockfire appears well-positioned following recent news about plateau drilling and a successful placing earlier this month. The stock has unfilled gaps to the upside and a rising 50-day moving average. RSI has rebounded above 50, suggesting a move back toward the February resistance at 0.19 pence, with an extended target near 0.22 pence by next month.
Sunrise Resources
After a period of volatility, Sunrise Resources showed renewed strength with a strong Friday session—opening low and closing high, a bullish sign. The stock aims for the top of its rising trend channel at 0.24 pence by month-end, with potential to reach the 200-day moving average near 0.26 pence.
Solonus
Solonus surged 13% on Friday following a premium placing, hitting a near-term target of 0.29 pence. If it stays above this level, the next resistance is at 0.46 pence, a level last seen around this time last year. This target could be reached as soon as the end of the month.
Microlise Group
Microlise’s chart shows a classic “step fashion” pattern with vertical rises followed by sideways moves. The stock is targeting a minimum of 145 pence by month-end, supported by recent resistance levels around 113 pence and key support at 114 pence.
Thor Energy
Thor Energy presents a textbook example of a bear trap island reversal, gapping down then up, signaling strength. The 50-day moving average is rising, and the RSI has rebounded above neutral 50. The emerging V-shaped bull flag suggests a target of 0.80 pence by the end of next month, potentially sooner.
Videndum
Videndum shows promise with a “handle” formation following a cup shape. The stock is advancing toward the top of its rising trend channel at 114-115 pence, supported by a series of strong blue candles and a rising 50-day moving average. Maintaining above recent resistance near 89 pence will be key to this upward momentum.
Conclusion
The market landscape as we move through July shows a mix of consolidation and promising breakouts across indices, commodities, and select stocks. Global indices like the FTSE 100, DAX, and Dow remain within well-defined channels with clear support and resistance levels to watch. Bitcoin and gold continue to present contrasting but compelling narratives—Bitcoin breaking out strongly, while gold consolidates within its own rising channel.
On the stock front, several companies are showing encouraging technical setups and positive developments, from mining licenses and corporate placements to classic chart patterns signaling potential breakouts. Keeping an eye on these stocks could uncover valuable opportunities as momentum builds into the end of the month and beyond.
Stay tuned for further updates as markets evolve and new data emerges.
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.
