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, Aminex, Autins, Boku, Bezant, CAP-XX, Cab Payments, Eurasia, OPG, Seraphim, Tandem, Tap Global, Wishbone.
Market Overview: Indices and Commodities
FTSE 100
The FTSE 100 closed the week on a strong note, finishing just above the critical resistance level of 8800. Friday’s price action was particularly encouraging, with the market opening at its low and closing at its high—signaling strength that should carry into Monday’s trading. The next major target is the top of the rising trend channel dating back to March last year, around 9030, anticipated by the end of July.
On the downside, the 50-day moving average at 8661 provides a key support level, along with the range floor near 8700. The RSI indicator has moved back above the neutral 50 mark to 55, reinforcing the positive outlook.
DAX
The DAX also ended the week on a bullish note, closing a gap to the upside and forming a bear trap island reversal above recent resistance at approximately 23,800. The upward momentum points to a potential rise toward 25,000 by the end of next month, aligning with the top of the rising trend channel established since March last year.
Support lies at the 50-day moving average near 23,400, which traders should watch closely.
Dow Jones Industrial Average
The Dow has cleared a significant resistance zone between 42,800 and 43,000, which had held since late March. This breakout was preceded by a double bounce on the RSI 50 level, a classic bullish signal. With the Dow closing just shy of 44,000 on Friday, the next targets include the record highs around 45,000, and optimistically, the top of the rising May trend channel near 47,200 by the end of July.
Both the 50-day and 200-day moving averages are on the rise, and a golden cross appears imminent within a few weeks—a pattern often associated with strong upward momentum. Notably, the April-May reversal was a bear trap, characterized by gap downs followed by gap ups, further supporting the bullish scenario.
Bitcoin
Bitcoin remains resilient, hovering just above its rising 50-day moving average at around $105, with an RSI of 56, an ideal setup for a new leg up as long as it holds above this level. The immediate resistance to break is near $109, with a target toward the top of the channel near $125 by the end of July.
Both the 50 and 200-day moving averages are trending upwards, and the market is buoyed by institutional buying, as Bitcoin treasury strategy companies continue accumulating.
Gold
Gold is currently testing the floor of its steep rising trend channel from March but is facing some resistance. The price is just above the 50-day moving average, which provides a positive sign, although the RSI remains below 50, indicating caution.
Initial resistance is at 3444, with a potential target of 3800 by the end of next month if the market can break through. On the downside, support near 3250 (specifically 3245) may cap losses in the near term.
Stocks to Watch: Hidden Gems and Momentum Plays
Aminex
Aminex has broken a major resistance line from March last year, crossing above its 200-day moving average at 1.2p. The momentum looks promising with two consecutive days where the price opened at the low and closed at the high, and a rising 50-day line. The target is 1.8p by the end of July, contingent on holding above 1.2p and ideally above the 50-day line at 1.12p.
Autins
Autins experienced strong bullish candles in the latter half of last week, especially on Thursday and Friday. The initial target remains around 14.75p, with a modest extension up to 20p by the end of July.
Boku
Boku shares have finally broken through the main resistance at 195p. The outlook is straightforward: as long as the price stays above this level, the stock could reach the top of its rising trend channel around 230p by the end of next month. Boku’s strong performance continues to attract attention, potentially from larger companies looking to acquire.
Bezant
Bezant recently broke through resistance at 0.34p, with a target of 0.45p over the next few weeks. Surpassing this level could open the door for further gains.
CAP-XX
CAP-XX shows a classic saucer-shaped turnaround, having broken recent resistance near 19p. The initial target of 19p has been met, with expectations of climbing toward 45p by the end of August, assuming the U-shaped recovery continues.
Cab Payments
Cab Payments may finally be finding a bottom after a difficult stretch, bouncing off lows and forming a higher low compared to April. The 50-day moving average is rising, and the stock closed Friday at its high after opening at its low—a bullish sign. Breaking above 45p could push shares toward 57p and beyond, potentially retesting post-March resistance and the top of its recent range. The RSI has also pushed above neutral 50 for the first time in over a month, supporting the recovery thesis.
Eurasia
Eurasia appears stable, having broken a resistance line from March. Support now rests around 3.7p at the floor of its channel. While above this level, the stock could see a return to the May peak of 5.15p and potentially climb back to the top of its range at 7–8p by the end of July. Key is maintaining price above the 50-day moving average.
OPG
OPG has quietly broken resistance from August last year and surpassed the 200-day moving average at 6.15p. The stock is expected to fill the gap and reach old August support near 9p before the end of July. Although this is a conservative target, an RSI rebound above 50 signals bullish momentum.
Seraphim
Seraphim broke out of a bull flag pattern between 72p and 75p with a gap, hitting the initial target of 85p. The next target is the upper parallel of its rising trend channel from October 2022, as high as 115p. The space sector, where Seraphim operates, is heating up, and shares remaining above the gap floor at 77p is crucial for continued gains.
Tandem Group
Tandem Group recently achieved a golden cross with a rebound in RSI above 50. The stock needs to clear resistance near 190p to confirm strength. If it does, the target could be the top of the rising trend channel from December 2023 at 275p, an ambitious goal by the end of August. Staying above the 50 and 200-day moving averages at 160p and 170p respectively is key.
Tap Global
Tap Global sports a well-defined bull flag between 2.22p and 2.8p, with both 50 and 200-day moving averages rising sharply. This suggests a return to the top of the range near 3.5p, with a best-case scenario of reaching 7.5p by the end of August—levels last seen during the pandemic in July 2021. Maintaining price above 2p is critical for this upside potential.
Wishbone
Wishbone is drawing comparisons to Greatland Gold, having recently hit an initial target of 0.28p, a level few believed in. The next target is 0.50p by the end of June, assuming the company continues on a growth trajectory. With a current market cap of £8 million, there is plenty of room to catch up to Greatland Gold, which has a market cap around £41 billion, albeit a figure that seems quite inflated.
Conclusion
Across global indices, Bitcoin, gold, and a curated list of stocks, the market shows encouraging signs of strength and potential for further gains. Key technical levels and moving averages provide clear markers to watch, while momentum indicators like RSI add confidence to bullish setups. Whether you’re focused on blue-chip indices or emerging opportunities in smaller stocks, the coming weeks could offer exciting prospects.
Keep an eye on these levels and setups as we move into July, and stay tuned for more updates and detailed analysis throughout the week.
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.
