Swiss market analysis based on technical analysis

Part 7


Dear investor,

The Swiss stock market closed lower on Friday and looks back on an overall weak week on the stock market. While the leading SMI index had opened in the morning, clear deliveries by the US markets in the afternoon also pulled the local indices into the red.

Investors are still torn between rising infection rates with the corona virus and the hope of an economic recovery, the market said. After the governor of Texas stopped opening the economy for the time being, Wall Street was "out of breath", according to a trader: investors would price the risk of a second corona wave back into the prices. In addition, new US economic data presented itself on Friday afternoon rather pulled through.


The SMI closed 0.47 percent in minus at 10,089.83 points. For the entire week, the leading index saw a decline of 2.2 percent. The SLI, in which the heavyweight weights are capped, fell 0.11 percent to 1,498.31 points on Friday and the broad SPI lost 0.30 percent to 12,089.41 points. Of the 30 SLI values, 13 closed in the minus, 16 in the plus and one (Zurich) unchanged.

The indices were weighed down by the weak pharmaceutical heavyweights Novartis (-1.7%) and Roche (-1.2%). Novartis was in the spotlight at the end of the week with high US fines for allegations of corruption in Greece but also with allegations of high prices for leukemia therapy. There were slight levies on the titles of the third SMI heavyweight Nestlé (-0.2%).

Chip manufacturer AMS (-1.7%) closed again in the red after Thursday's price slide. The chip maker rejected the media reports on management's non-compliant trading activities on Friday morning. "But after the Wirecard disaster, people are careful," commented a dealer.


The well-launched bank stocks gave way in the afternoon. UBS's major bank stocks (+ 0.5%) closed the day up, while CS (-0.3%) ended the day with losses, as did Julius Baer (-0.4%). In terms of insurance values, Zurich closed unchanged, while Swiss Re and Swiss Life (both -1.2%) clearly declined.

The luxury goods stocks Swatch (-0.9%) and Richemont (-0.5%) were again weak. Positive statements from Swatch boss Nick Hayek, who in an interview with the magazine "Bilanz" convinced himself of a rapid recovery in the demand for watches, only temporarily supported the shares.

* Source: tp / kw


Based on technical analysis for this week as an interesting share, Rieter Holding AG,  offers itself. Bullish divergence on these stocks still looks recommendable. Current price is CHF 86.90 and support is CHF 79.80.


In part 5 we mentioned Ascom Holding AG as good stocks. In the meantime, the shares could generate a profit of over 20%, which is actually very good for mid-term shares. Although RSI was not yet worth 70 at such profit, it can be think about selling it.


On the other hand, this week we also found stocks that can be shortened. These are shares of Lonza Group and Also Holding AG. In addition to RSI, or so-called bearish divergence, if you look at the candle chart you see the same signal in the candle pattern.


All purchase recommendations are made based on technical analysis and these recommendations are without responsibility.

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