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, ACG, Argo Blockchain, Cadence, GS Chain, Harena, Hydrogen Utopia, Predator, SEED, Thruvision, Tissue Regenix, and Westminster Group.
Major Indices Overview
FTSE 100: On the Verge of a Breakout
The FTSE 100 remains within a long-established rising trend channel that has been in place since March of last year. Currently, the index is approaching the upper boundary of this channel near 9,050 points, with a few trading days left in the month to push higher. Should the FTSE surpass 9,050, the next resistance target to watch is around 9,230, marking the top of a secondary rising trend channel from May.
Support levels are crucial here: 8,910 points, which was June’s resistance, now acts as the floor of the channel. A dip below this could bring a test of the 50-day moving average at approximately 8,796. However, the FTSE has remained above this 50-day line since early May, suggesting a bullish bias barring any unforeseen negative developments.
DAX: Steady Bounce with Strong Momentum
The German DAX index mirrors the FTSE’s positive momentum, bouncing above its 50-day moving average, now near 23,900 points. The target remains the top of the rising trend channel established in spring 2024, around 25,100 points, potentially by the end of July or early August if momentum slows.
Technical strength is underscored by the Relative Strength Index (RSI) consistently holding above the neutral 50 level on three separate occasions this month, a strong indication of sustained upward momentum.
Dow Jones: Flagging a Bullish Continuation
The Dow experienced a midweek pullback dipping below 44,000 points but quickly recovered, signaling strong support at that level. The formation resembles a bull flag pattern, with a breakout above recent resistance at approximately 44,600 points potentially propelling the index toward an upper channel target near 47,400-47,500 points by the end of August.
The Dow benefits from having already achieved a golden cross—a bullish crossover of moving averages—and the RSI sitting comfortably above 50 at 59, reinforcing an optimistic outlook while remaining above the 44,000 support zone.
Cryptocurrency and Commodities
Bitcoin: Consolidating Before the Next Move
Bitcoin is currently consolidating between roughly 115,000 and 120,000 points, forming what looks like a mid-move pause before a further advance. The upper boundary of this consolidation channel sits near 127,000 points, with an achievable peak around 123,000 points considered a realistic short-term target.
On the downside, maintaining support above 115,000 is critical, with the May resistance level at 112,000 points acting as a key floor. Looking ahead, a best-case scenario projects Bitcoin climbing to the top of a rising trend channel near 142,000 points by the end of August.
Gold: Navigating Geopolitical Influences
Gold remains within a rising trend channel in place since early April, with the floor around 3,300 points. The next resistance levels to monitor are the April and May highs near 3,430 points, and the channel’s upper boundary around 3,800 points, potentially reachable by the end of August.
Given gold’s sensitivity to geopolitical factors, there remains a possibility of downside risks, especially if it falls below the channel floor. Key support lies near 3,220 points, with the RSI holding above 50 and the 50-day moving average rising near 3,322 points, providing a positive technical backdrop.
Selected Stocks: Charting Potential Turnarounds and Breakouts
ACG Metals: Strong Uptrend with Record Stability
ACG, closely tied to the gold sector, has been trading within a broad rising trend channel. Since breaking above the 200-day moving average in June, the stock has exhibited a step-like upward progression characterized by vertical advances and sideways consolidation, signaling strength.
With both the 50 and 200-day lines trending upwards and predominantly blue (up) candles since May, ACG looks poised to challenge resistance levels at £5.88 and £6.35, with an ambitious target of £10 by the end of August.
Argo Blockchain: A Resurgence in Momentum
Argo Blockchain has broken out of a falling trend channel, surpassing the key 3.15p resistance level. This breakout, combined with a gap-close signal and a rising 50-day moving average near recent lows, suggests a lasting turnaround.
Targets include a move up to 5.5p, with a best-case scenario aiming for 7.7p if the upward momentum continues.
Audio Boom: Turnaround Signal With Strategic Acquisition
Audio Boom’s recent acquisition of a UK podcast company hints at efforts to boost revenues. The stock experienced a bear trap gap reversal—a favored turnaround pattern—breaking back above April’s support near 304p.
The next resistance lies around 404-405p, with hopes that the stock can sustain its gains this time, avoiding previous sell-offs that have capped rallies.
Cadence Minerals: Emerging from a Prolonged Downtrend
After a challenging bear market, Cadence shows promising signs of recovery. The 50-day moving average is rising, and the stock has recorded only blue candles so far this month, a rare feat.
With RSI support around 50 and initial resistance at 1.9p (the 200-day line), a move toward 2.4p by the end of August seems achievable.
GS Chain: Triangle Breakout Sparks Optimism
GS Chain recently broke out of a triangle pattern, moving above 0.25p. The stock’s near-term target is the resistance level around 0.65p, with the 50-day moving average at 0.35p serving as a key support level.
Harena Resources: Signs of a Turnaround
Harena has shown strength with two consecutive bullish candles breaking out of a falling wedge and above the 50-day line near 1.25p. The next goal is reaching 2.1p, the top of a broadening triangle base formed since March.
Hydrogen Utopia: Volatile but Showing Strength
Despite a turbulent history, Hydrogen Utopia posted a notable 10% gain recently. The stock faces resistance at 1.6p, with support near 1.3p. A gap fill target exists at 2.25p, coinciding with the 200-day moving average.
Predator Oil & Gas Holdings: Breaking Through Resistance
Predator has broken above the 200-day moving average, supported by a rising 50-day line. The initial target of 5.44p has been reached, with a further push toward 8p possible by the end of August, marking the upper boundary of the rising trend channel from March.
SEED Invasions: Promising Rebound
SEED Invasions is recovering after bouncing off support near the 50-day line at 2p. The stock faces initial resistance at 2.4p, with a longer-term target around 3.2p by the end of August, suggesting a solid rebound in progress.
Thruvision Group: Holding the Gap and Eyeing Resistance
Thruvision gapped up early in July and has maintained above the midpoint of the gap—a bullish sign. A close above the 50-day moving average near 1.33p could trigger a rise toward the 200-day average and February resistance around 4.5p. A more modest target near 2p is also possible in the near term.
Tower Resources: Approaching Golden Cross
Tower is progressing toward a golden cross, with an initial target of 0.043p now extended to 0.055p by the end of next March, representing a key resistance level from last October.
Westminster Group: Momentum Fueled by New Contracts
Westminster Group continues to benefit from a steady stream of new contracts. The stock trades within a rising trend channel, aiming for 4p by the end of August, supported by rising 50 and 200-day moving averages and a current floor near 2.3p.
Conclusion
The market landscape as of mid-July presents a generally constructive picture across major indices, cryptocurrencies, commodities, and selected stocks. Key technical levels and trend channels suggest potential upside targets in the weeks ahead, while support levels provide guardrails against downside risks.
From the FTSE 100 and DAX’s rising trend channels to Bitcoin’s consolidation and gold’s geopolitical sensitivity, each market offers unique opportunities for traders and investors. Meanwhile, individual stocks such as Argo Blockchain, Cadence, and Predator show encouraging signs of turnaround and breakout potential, underscoring the importance of technical analysis in identifying market shifts.
Staying attuned to these developments and monitoring key support and resistance levels will be essential for navigating the weeks ahead with confidence.
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.
