Matteo8

Long SMI Index for the next 3 months

Long
SIX:SMI   Swiss Market Index
Something is happening within the Swiss equity markets!

There are two technical analysis signals which are bullish:
1. Monthly bullish engulfing pattern (2-candle chart figure, where the second candle overlaps the body of the first candle)
2. Price have not broken the long-term support level . The trend has started from 2011 closed prices and is still on!

Since these signals are of long-term nature, my view is that Swiss equities are most likely to rise in 2021.
Please note, I have not looked at fundamentals and have relied only on chart analysis.

Be aware that the Swiss Market Index is very concentrated as four stocks (Novartis, Nestle, Roche and Zurich Insurance Group) make up more than 32% of the total positions (30 members ).

I would implement this idea in two ways:
1. Buy passive instrument as ETF on the Index (preferred option)
2. Buy slight ouf of the money call option on the index

Happy Trading!
Matteo

Comments

Nice feeling to see after 3 months that I got it right! It would be great if @TradingView had a track record for each user. sort of a ratio of wins and losses to check if the idea actually worked.
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