Swiss market analysis based on technical analysis

Part 8

Dear investor,


The Swiss stock market ended trading on Friday with clear losses. The mood continued to fluctuate between economic hopes and corona concerns. But because of the rapidly increasing number of infections with the virus - a further 50,000 were reported in the USA the previous day - investors' appetite for risk was somewhat dampened, the market said. "If the lockdown measures continue to increase there, it's not good at all - neither for the economy nor for the markets," said one dealer.


Profit-taking was also inevitable: "We have now returned to a proud level." However, strong numbers from the US labor market brightened the mood somewhat. Otherwise, market participants spoke of a rather calm trade. There was a lack of strong impetus - also because the stock exchanges in the USA remained closed due to the independence holiday there.

The SMI closed 0.61 percent lower at 10,125.84 points. The index reached its low for the day shortly before at 10,110 points. The intraday high on Friday was 100 more in the morning. For the week ending, there was an increase of 0.8 percent.

The SLI, which contains the 30 most important stocks, lost 0.41 percent to 1,523.37 points and the broad SPI 0.53 percent to 12,521.87 points. 19 SLI losers came to nine winners and two unchanged titles.


Significant taxes in the three heavyweights Roche (-1.2%), Novartis (-0.8%) and Nestlé (-0.6%) weighed on the market. Roche and Nestlé are among the few SMI winners so far this year.

On Friday, Logitech was also one of the biggest losers (-1.0% to CHF 60.98). CEO Bracken Darrell had recently sold just under 167,000 shares worth a good $ 10 million, which he had received through options from a participation program. Insider transactions are often used to indicate how a company's business could develop. "But in this case, the CEO should have simply cashed in," commented a dealer. Logitech has gained a third since the beginning of the year despite the Corona crash.


Sonova (-1.6%), Sika and Geberit (-1.0% each) also suffered major losses. The sanitary engineering group plans to publish half-yearly sales after the weekend. Analysts suspect a double-digit decline in sales.

On the other hand, the always volatile AMS (+ 3.1%) rose strongly until the end. The shares of longtime stock exchange favorite, pharmaceutical supplier Lonza (+ 1.1%) were once again at the top. Goldman Sachs analysts commented that stocks had been about 20 percent better than the industry index since mid-April, thanks in large part to the defensive nature of the company, which has proven to be more stable in volatile times.

* Source: ys/kw

If you look at the Swiss market through technical analysis, you can see that for many stocks, the highs from the beginning of the pandemic have become resistance. Everything is currently in a very quiet phase. This can all be because of summer time when the movements are not so strong, but also because of the current situation and fear that is still there. Reports begin again in mid-July, with whom you can expect more volatility.

Based on technical analysis, I found Stadler Rail AG to be very interesting stocks. These stocks are on a long-term support line. And that's exactly where you can see bullish candle patterns. Current price is 38.16 CHF and support is 37.40 CHF. Stadler Rail has also recently received large international orders.


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


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