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
Labels: Technical Analysis