The Swiss Market Index (SMI20) has entered a correction phase after failing to hold above 12,900 resistance. The index is now testing 12,872 support, with sellers in control following a steep decline. With RSI dropping sharply, downside momentum is increasing, making this a critical juncture for the market. This analysis explores the technical indicators, key levels, and fundamental factors shaping the next potential move.
📊 Detailed Technical Analysis
✅ Break of Uptrend SMI20 initially surged in an upward trajectory but lost steam at 12,900 resistance, triggering a sell-off
📉 Moving Averages (MAs)
50 WMA at 12,908 The price has fallen below this level, signaling a shift in momentum
200 WMA at 12,910 A further drop could confirm deeper bearish pressure
📊 Relative Strength Index (RSI)
Current RSI 23 ⏬ (Oversold Territory)
Bullish Signal If RSI recovers above 30, a relief bounce is possible
Bearish Signal A continued drop could signal more selling pressure
📍 Key Support and Resistance Levels
🔻 Support Levels
12,872 Immediate support level currently being tested
12,843 Lower key support if selling accelerates
🔺 Resistance Levels
12,900 If reclaimed, could indicate renewed bullish strength
12,950 Major resistance level for potential recovery
🌍 Fundamental Factors Influencing SMI20
📉 Global Stock Market Performance The SMI often follows broader European and global market trends
🏦 Swiss Economic Outlook Economic data, SNB policies, and corporate earnings reports influence market sentiment
💰 Interest Rate Speculation Any signals from the Swiss National Bank (SNB) regarding monetary policy shifts could impact SMI20
📉 Market Risk Appetite Global risk sentiment, particularly from the U.S. and Eurozone, will play a role in shaping market direction
🔮 Outlook and Trading Considerations
📈 Bullish Scenario If SMI20 holds 12,872 support and RSI rebounds above 30, a recovery toward 12,900 – 12,950 is possible
📉 Bearish Scenario A failure to hold 12,872 could trigger a move toward 12,843 or lower, confirming a deeper correction
💡 Trading Recommendation
Aggressive Traders Might consider small long positions if price stabilizes above 12,872, with stops below
Conservative Traders Should wait for confirmation (a breakout or a confirmed bounce) before entering trades
Short Sellers A breakdown below 12,872 could provide an opportunity to target 12,843, with stops above resistance
⚠ Volume is Key Watch for high volume confirming either a breakout or breakdown
📌 Disclaimer This analysis is for informational purposes only. Trading involves risks, and past performance does not guarantee future results. Always conduct independent research before making financial decisions
