Swiss market analysis based on technical analysis

Part 10

Dear investor,


The Swiss stock market decided on Friday to have an overall positive trading week with light levies. In a subdued trading environment, the leading index SMI fluctuated around the 10,400 point mark throughout the trading day. Last but not least, the continuing rise in corona infection rates in the USA weighed on the mood of equity investors.


In addition, the focus was also on the EU summit, where the heads of state and government are negotiating the 750 billion plan against the corona crisis until Saturday. Even if the chances of an agreement had recently increased, there were still numerous hurdles, commented a market observer. German Chancellor Angela Merkel also spoke of "very, very big differences" between the individual EU countries at the start of the summit.

The SMI closed down 0.22 percent to 10,410.52 points. The leading index rose by around 1.8 percent over the course of the week. The SLI, which contains the 30 most important stocks, fell 0.35 percent to 1,570.36 points on Friday and the broad SPI fell 0.02 percent to 12,890.54 points. Of the 30 SLI titles, 21 closed in the minus and nine in the plus.


The most significant levies among the blue chips were attributable to the very strong Lonza shares (-2.3%). There were also significant discounts for a number of typical cyclical companies, such as the shares of the recruiter Adecco (-2.4%) or the watch company Swatch (-1.8%).

The luxury goods group Richemont (-0.6%) also fell further after the downward slide from the previous day. Following the weak quarterly figures published on Thursday, UBS analysts reiterated their "neutral" rating for the stocks on Friday - a good part of the negative influences have already been reflected in the price, they commented.

The shares of the banking software specialist Temenos also closed slightly lower (-0.2%), which had suffered heavy levies on Thursday after the quarterly figures were drawn through. The Goldman Sachs experts also confirmed their recommendation to sell the titles on Friday.

Many financial stocks were also weak: Clear levies were suffered by the insurance stocks Swiss Re (-1.3%), Swiss Life (-1.2%) and Zurich (-0.9%). The large bank stocks CS (-0.9%) and UBS (-0.4%) as well as the shares of the Asset Managers Partners Group (-0.7%) also closed clearly in the red. In contrast, Julius Baer, ​​the private bank, rose (+ 0.6%) before the presentation of the half-year report on Monday.


Swisscom shares posted slight gains (+ 0.04%). The telecom company confirmed on Friday sales negotiations for its stake in the Belgian telecommunications wholesale company BICS, which was founded in 2005.

Novartis (-0.1%) closed slightly weaker in the SMI heavyweights, while Nestlé (+ 0.3%) and Roche (+ 0.5%) supported the market. The eye care specialist Alcon (+ 0.7%) also grew. The former Novartis subsidiary announced new data on its products at a US conference on Friday.


There were also price gains for SGS shares (+ 0.9%) after the recommendation to "buy" was upgraded by the German Berenberg Bank. The strongest stocks in the SLI were Logitech shares (+ 1.8%), which climbed to further highs on Friday, and Vifor Pharma (+ 1.9%).

Zur Rose shares (+ 2.4%), which are among the "high-flyers" on the Swiss market in the current year, rose on the broad market. The mail-order pharmacy published disappointing pre-sales figures. However, the announced takeover of the German TeleClinic was received positively.

The shares of technology company Ascom also closed more tightly (+ 2.6%) despite the announcement of a loss for the first half of the year. Analysts pointed out that sales in the first half of the year were resilient despite the crisis.

* Source: tp/ra

BVZ Holding AG is an interesting share based on technical analysis for this week. Bullish divergence on these stocks looks recommendable. Current price is CHF 900.0 and support is CHF 770.0.

Idorsia Ltd shares, which are characterized by window support from 04/17/2020 and exceptional volume, are also recommended. Current price is 27.20 CHF and support is 26.68 CHF. A sale at CHF 32, where there is resistance, brings good returns.

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

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