Swiss Market Index - Update
In 2019, the SMI was one of the first index around the world to make new all time highs.
An index is always the average of all its components. Therefore it is always interesting to take a so called deep dive into each and every single stock making up an index, focusing on those that are in an uptrend and putting aside those that are either in a downtrend or in a sideways range.
Let's start with checking where the index itself stands, before looking at its components.
Here's the Swiss Market Index weekly chart.
The SMI is in a clear uptrend. As the price is currently above the 1.618 Fibonacci extension level of the early 2015 to early 2019 trading range, that area (10733) becomes support and the next resistance/target in sight lies around 12650. The RSI as well as the MACD are both in a bullish range and reaching an overbought level, i.e. interim pullbacks are likely.
With regards to the index's 20 components, only one is in a downtrend - UHR (Swatch Group) and 7 are in sideways range - ABB (ABB Ltd.), ADEN (Adecco), BAER (Julius Baer), CFR (Richemont), CSGN (Credit Suisse Group), LHN (LafargeHolcim), UBSG (UBS group) - which leaves 12 names in uptrend.
Within those 12 stocks in uptrend, some are currently overextended and do not offer a good entry point, like SCMN (Swisscom)
The stocks that are in uptrend and are currently offering a good reward versus risk, in the sense that they are near their support and far from their upside potential target, are for example SLHN (Swiss Life)
SREN (Swiss Re)
and ZURN (Zurich Insurance)
to view all the 21 charts in full screen with their respective resistance (target if in an uptrend) and support (target if in a downtrend) simply click here.