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, Conroy, Cloudbreak, Georgina, Hamak, IntelliAM, Kodal, Mkango, Metals Exploration, Rockhopper, Smarter Web, Vaultz, WeCap.
Market Indices Overview
FTSE 100
The FTSE 100 has been somewhat disappointing, currently stuck near the 8,840 level. Zak highlights the importance of an end-of-day close above this point to pave the way for a rise toward 9,020 or 9,030 by the end of July. On the downside, the 50-day moving average at 8,710 serves as key support—if breached, a pullback to this level would be expected. The RSI has shown a double bounce at 50 and 57, indicating a potentially strong setup for an upside move.
DAX
The German DAX index has been hovering around its 50-day line near 23,600, but crucially remains above the March resistance level of 23,500 and maintains an RSI above 50 at 52. This suggests momentum is intact, with a target toward the top of the rising trend channel from spring last year, potentially reaching as high as 25,000 by the end of July.
Dow Jones Industrial Average
The Dow was closed for Independence Day, but prior to the holiday, it experienced a typical pre-festivity rally. It is now knocking on the door of record highs near 45,000, with a longer-term target of 47,600 by the end of August, or possibly sooner. Staying above the 44,000 support level, which was previous March resistance, remains critical for this bullish scenario.
Cryptocurrency and Commodities
Bitcoin
Bitcoin remains the market’s focal point, especially due to its correlation with treasury stocks. Currently trading at around 108,000, Bitcoin is comfortably above its rising 50-day and 200-day moving averages. Zak emphasizes the importance of a clear end-of-day close above the 110,000 zone, which could trigger a surge toward 125,000 by the end of August. The RSI in the mid-50s is ideal, especially after a solid rebound from the 50 level earlier this month.
Gold
Gold is struggling to maintain its position within the rising trend channel established in March and to stay above the 50-day line near 3,320. While it manages this, resistance at 3,440 (April highs) is the next hurdle. Clearing this could open the door to a move as high as 3,800 by the end of August. However, caution is warranted as a “rug pull” toward 3,250–3,230 remains a possibility, with the RSI currently below the neutral 50 mark, indicating some weakness.
Spotlight on Bulletin Board Stocks
Conroy Gold and Natural Resources
Conroy has finally broken above its 200-day moving average for the second time, closing above 4.5 pence, a resistance level dating back to 2025. The target is ambitious—up to 9.6 pence, aligned with the top of a broadening triangle pattern formed since July last year. Maintaining levels above the 50-day line at 3.4 pence will be crucial for sustaining momentum.
Cloudbreak Discovery
Cloudbreak is showing promising signs with an initial target of 0.28 pence by the end of July, following a rebound above the 50-day line at 0.17 pence. This stock is finally gaining traction after some time in the doldrums, making it one to watch.
Georgina
Georgina appears to be back in business, following a wide-ranging day last Friday. Holding above the floor of its channel at 7.3 pence, the stock could climb as high as 12.8 to 13 pence within its rising trend channel dating back to December, with this move expected by the end of August.
Hamak
Hamak has transformed itself with a significant fundraise and is now breaking new highs, surpassing previous targets around 1.44 pence. The next target is around 3 pence by the end of August, which would represent a midpoint recovery from the decline experienced in April last year.
Intellego
Intellego Technologies AB has hit its initial target at around 101 pence and looks set to challenge last year’s highs near 119–120 pence by the end of July. The stock’s steady ascent is supported by an unfilled upside gap from May, although a recent pullback below resistance at 91 pence has delayed the expected upside.
Kodal Minerals
Kodal is showing a potential broadening triangle base rebound. The stock needs one or two more end-of-day closes above 0.3 pence (post-June resistance) to confirm this move. RSI has pushed through the neutral 50 level, and the best-case scenario projects a rise to the 200-day line at 0.37 pence, with a stretch target of 0.47 pence by the end of August. Maintaining support above 0.28 pence is vital.
Mkango Resources
Mkango was the star performer of the week, surpassing the previous target of 26 pence at the top of its rising trend channel. The upper parallel sits at 35 pence, potentially achievable before the end of July, with the 2021 peak at 37 pence potentially within reach in the coming days.
Metals Exploration
Metals Exploration has experienced a massive rally, perhaps underappreciated until now. The upper parallel of its rising trend channel points toward 9 to 12 pence, with an optimistic target as high as 18 pence by the end of July. With a market cap around £400 million, this “elephant” is galloping strongly and is worth close attention.
Rockhopper Exploration
Rockhopper is also performing well, trading within a rising trend channel from November. The top of this channel is around 70 pence, and the stock is holding above recent resistance at 52 pence. Zak expects this target to be reached potentially by the end of July.
Smarter Web
One of the standout stocks of the year, Smarter Web, has staged a bear trap rebound from below Thursday’s support at 312 pence. Holding this level is key, with an end-of-day close above Thursday’s peak at 342 pence needed to retest 375 pence, which was reached earlier in the week. The setup is positive but still requires follow-through.
Vaultz Capital
Vaultz Capital, another Bitcoin treasury play, has benefited from a recent fundraise at 15 pence, leading to a sharp price increase. The shares bounced off a previous target at 13 pence, with the next level at 33 pence expected by the end of July or sooner.
WeCap
WeCap has staged a nice V-shaped rebound, bouncing off its 50-day line and the RSI 50 level. This suggests the stock could reach the top of its channel at 1.8 pence by the end of July, even if no further progress is made. Both the 50-day and 200-day lines are rising, indicating an approaching golden cross—a strong bullish signal.
Conclusion
Zak Mir’s weekend market review offers a detailed and actionable perspective on a wide range of assets. From major indices like the FTSE 100, DAX, and Dow to the dynamic Bitcoin market and key commodities such as gold, the technical outlook indicates several potential bullish opportunities while maintaining caution around key support levels.
On the bulletin board side, stocks like Mkango, Metals Exploration, and Smarter Web stand out with strong momentum and clear upward targets, while others like Conroy and Cloudbreak show promising setups that could develop further. Investors should keep an eye on critical resistance and support levels, RSI signals, and moving averages as these stocks navigate their respective trend channels.
Overall, the market is positioned for potential gains in the coming weeks, provided key technical levels hold and momentum continues to build. Staying informed and disciplined with entries and exits will be key to capitalizing on these opportunities.
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.
