The Swiss Market Index (SMI) has been facing challenges in regaining momentum since early September. It is currently hovering around the support level of 11,850 points, which is a critical juncture for the index.
The lack of robust buying pressure raises concerns about its ability to rebound effectively. If the index declines below 11,850 points, it could lead to a more significant retracement with the next major support level at around 11,500 points.
The upcoming U.S. presidential elections are also expected to bring market volatility, as historical trends suggest a trendless pattern before the elections followed by a strong rebound afterward. Investors may adopt a wait-and-see approach, leading to fluctuations in the SMI.
A strategic trading approach has been proposed with a buy entry point above 12,000 points and a target set at 12,500 points. Investors are advised to closely monitor the price trends of the SMI and consider the interplay between domestic market dynamics and international political developments.
The current state of the Swiss stock market highlights the importance of understanding technical analysis and broader economic indicators. Investors should stay informed and adaptable to navigate the complexities of the market.