The SMI could attempt a rebound from its support at 10,000 points in the short term
The Swiss stock market could regain height in the short term after returning to test a low of almost two years. The SMI returned to test the symbolic threshold at 10,000 points for the first time since the end of 2020 and the lower limit of the descending channel in which it has been oscillating since the start of the year.
The risk/return ratio shifts back into favor of longs at the current price level. The SMI could take advantage of this technical price level to attempt a rebound, especially since it tended to rebound the last few times it returned to symbolic support and the RSI fell at the same time into the oversold zone. (< 30), which is currently the case.
Should the SMI rebound, the former support at 10,500 points will be the first resistance to watch. Exceeding this threshold would pave the way for a return to the resistance at 11,300 points, but such a high rebound seems hardly credible without a marked improvement in the inflation figures around the world or seasonally.
Positive economic surprises would have a mixed impact on the indices, since they would strengthen central banks’ expectations of monetary tightening, which would put more pressure on the bond market and therefore on the equity market.
SMI daily price chart – key levels