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Swiss Market Index SMI With A Possible Temporary Low

17. October 2022, by Antonio Ramos
Technical Analysis,  Guest Author Article

Swiss Market Index SMI - Possible Temporary Low – An 8% profit Short Term Opportunity

Following our market approach of cycles – Accumulation, Mark-up, Distribution and Decline, we observe a possible accumulation phase of the SMI by investors in the past few days, after a strong decline sparked by the HIGH established in December 2021.

SMI 

When we look at the hourly chart, we see this possible accumulation phase developing between the levels of 10,111 and 10,600. We can also observe that the price movement of Friday, October 14, has broken the trendline from September.

This upward movement also left a gap on the price action around 10,266 which will define our ideal entry level.

setup

This pattern development opens two scenarios for a possible short term opportunity:

  1. (Pink Dotted Line) The SMI will decline in search of the gap in the next few days, and bounce on the lower level of the trading channel 10,111 initiating the move up to 10,600 with a target of 11,000, last high established in September.
  2. (Blue Dotted Line) The SMI will spark higher to test the 10,600 level, and reverse the movement to close the gap, when the ideal entry will be established, before the expected upward initiates.

Both of these scenarios offer a overall potential 8.29% profit gain. It would be wise to take some profits on the 10,600 level just in case. The stop loss would be triggered on a daily close below the lower channel level 10,111.

Profit Potential: 8,29%

Risk: 2.2% (Stop Loss 10,000)

About the author

Antonio Ramos

Antonio Ramos is an entrepreneurial Investment Advisor with over 10 years experience in Financial Services, accomplished with the Level III exam from MTA/CMT, Antonio has worked in a number of asset management companies in Switzerland, and has used technical analysis as the base premiss to market approach in various asset classes such as Equities, FX, Commodities and Cryptos, in diverse markets like Latin America, Europe and South-east Asia.

Disclaimer: All methods, techniques, charts, analysis or results presented in this SAMT Blog are for educational purposes only. The information provided should not be construed in any way as a recommendation to buy or sell any financial instrument. You should always consult with your licensed financial advisor and tax advisor to determine the suitability of any investment to your particular financial situation. The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity. SAMT and its affiliates, directors or agents will not be held liable or responsible for your investment decisions.

SAMT nor any of its affiliates, directors or agents are a financial advisory service, nor a licensed financial advisor and do not provide financial advice whatsoever in any financial product.

Further it should not be assumed that any methods, techniques or indicators presented will be profitable or that they will not result in losses. Past results of any individual trader or trading system presented are not indicative of future returns by that trader or system, and are not indicative of future returns which may or may not be realized by you.

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