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, Anemoi, Active Energy, Blue Star, Corpus, Cykel, Gelion, Haydale, Hamak, Hostelworld, Orchard, Strip Tinning, Tungsten West, Zoo Digital.
Major Indices Overview
FTSE 100
The FTSE 100 has recently slipped back below the 8,800 mark after a valiant attempt to hold above it. The focus now shifts to the late May support zone around 8,700, which could potentially halt the downward trend. Additionally, the rising 50-day moving average, expected to catch up before the month’s end, may provide critical support. The RSI remains just on the positive side of neutral at 50, suggesting it’s not yet time to be overly concerned. Above 8,700, the FTSE still eyes the 9,020 level, the top of the rising trend channel dating back to March last year, while the sharply rising 150-day moving average adds further hope for a rebound.
DAX
The DAX has been a source of disappointment, falling below its previous March support level at 23,500. This is a crucial threshold, with the 50-day moving average climbing steadily. Recovery hinges on regaining the 23,500 level and pushing the RSI back above neutral 50 from its current 44. This movement would signal renewed momentum in the German market.
Dow Jones Industrial Average
The Dow is testing the lower boundary of its rising trend channel, established since May last year, around 42,100. Holding above 42,000 keeps hopes alive for an advance to the 43,000 resistance level seen post-March. On the downside, the 50-day moving average near 41,600 is a key support level to watch. The RSI is again hovering just above neutral 50, but the market is struggling below its 200-day moving average at 42,500, indicating some caution is warranted.
Bitcoin
Bitcoin remains just below its 50-day moving average, a disappointing position given the widespread enthusiasm for Bitcoin treasury strategies. A close above the 50-day line at approximately $104,700 is needed to trigger a move toward resistance near $110,000. The optimistic target extends to $125,000 by the end of next month, aligned with the rising trend channel from March last year. However, a worst-case scenario involves a retest of the $98,000 May resistance level, with the 200-day moving average near $96,000 acting as a critical support. The RSI has failed to sustain above neutral 50, reflecting the current lack of upward momentum in the market.
Gold
Gold is taking its time consolidating near the bottom of its rising trend channel from March, with Friday’s low around $3,350. For a bullish move to materialize, a decisive close above $3,400 is essential, opening the door to a potential rally toward $3,800 by the end of next month. On the downside, dips to the 50-day moving average at $3,310 are viewed as buying opportunities. The RSI at 54 supports the possibility of an upward move, with price action suggesting a critical resistance level that the market must overcome to continue rising.
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.
