Top pick for the day - Swiss Market Index

Could a reversal be taking place?

Swiss Market Index (SMI) again failed to move above the multiple resistance levels yesterday and a reversal could follow next.

SMI has made a 10% comeback since the August steep fall to a low of 8,155.

Even though prices have been trading well within the ST uptrend channel but both the 200-day SMA and the 9,037-9,091 gap appears to have stopped prices from edging higher.

Besides that, the rebound also appears to be finding it difficult to close above the 62%FR level (9,009).

Only a fall below 8,695 would confirm that the next leg down could be underway.

The downside targets are at 8,155 and 7,860. A move above 9,091 would send prices higher to 9,538.

Watchout on both 8,695 and 9,091 key levels in the next couple of days. (Read Report)

Source : CIMB Research