Swiss market analysis based on technical analysis

Part 9

Dear investor,

The Swiss stock market ended the session on Friday at a firmer rate, which is the second consecutive week of the week as a whole. After a slow start, the SMI continued to grow steadily in the late afternoon, with the exception of a short phase. The US stocks, which opened in a very volatile manner, were jointly responsible for the somewhat more nervous closing phase. The local shares were supported at the end of the week by encouraging economic signals from Europe. France and Italy have published solid industrial data.


However, the general mood continues to meander between hope and fear. The Credit Suisse investment committee, for example, advises caution "from a tactical point of view": partly because of the increasing number of infections in the USA, but also because of the lower market liquidity in summer combined with a correspondingly higher volatility, which in turn has a greater impact on political risk factors can give. At the same time, the bank still sees upward potential in the medium term due to the flood of money from the central banks and the extreme political measures to curb Corona.


The SMI finally advanced by 0.85 percent to 10,229.97 points. On a weekly basis, there was an increase of 1.0 percent. The SLI, which contains the 30 most important stocks, rose 1.02 percent to 1,543.41 points and the broad SPI 0.82 percent to 12,670.41 points. All but 30 of the 30 most important titles closed higher.


By far the biggest winners were AMS (+ 6.1%). On the one hand, the conclusion of the Osram acquisition was well received, on the other hand, a positive analyst comment from the previous day had an impact. At Bankhaus Lampe the cover of the titles was recorded with "Buy". The responsible analyst assumes that AMS will now reduce debt quickly.


Behind it once again marked Lonza (+ 2.1%) strength. The shares once again lived up to their reputation as the previous shooting star among blue chips this year. Compared to the end of 2019, the titles cost a good 50 percent more and since the annual low in March alone, Lonza has closed by around 80 percent.


Behind them, CS (+ 2.1%), Sika (+ 1.9%), SGS (+ 1.8%) and LafargeHolcim (+ 1.7%) also rose above average. The insurers, of whom Swiss Re (+ 2.0%) were the most in demand, and the heavyweight Nestlé (+ 1.5%) were also responsible for the strong weekly closing.

In contrast to Nestlé, Novartis (+ 0.1%) ended up far behind, while Roche (-0.3%) was among the few losers who consisted exclusively of values ​​from the health sector: Sonova (-0, 2%) and Alcon (-0.1%).


There was more activity in the broad market than with blue chips. For example, Ems-Chemie (+ 2.6%) clearly rose according to the first half of the year. The specialty chemicals group suffered a significant drop in sales, but still exceeded expectations and maintained the high margin.


The updates from Huber + Suhner (-3.1%) and the TX Group (-2.3%) for the course of business in the first six months were not scheduled, which made both titles dive.

MCH got under the wheels (-9.7%). The fair operator gets James Murdoch on board through a capital increase. The conditions of the capital increase were described as surprising in market circles.


Dufry (-3.1%) continued their weakness after a sell recommendation, whereas Meyer Burger became more expensive by 3.8 percent after the approval of the shareholders for a further capital increase.

* Source: cf/ys

Technical analysis for this week showed us two interesting stocks with bullish divergence. They are a little riskier, but because of the closeness of support they are also something to recommend.


One of them is Airesis SA shares. Current price is 0.81 CHF and support is 0.80 CHF. These stocks have a quick potential above CHF 0.90 which brings a good return. And a sale when the support falls short of results only with a small loss.


Another interesting share with very clear bullish divergence are the shares of Private Equity Holding. Current price is 43.6 CHF and support is 42.6 CHF. This means that the risk associated with these stocks is clearly low.


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


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