4-hr SMI20: 300 points Drop on The Radar

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The Swiss stock market index is mirroring its global counterparts, such as Germany 40 and US100, experiencing a sharp decline following the announcement of new tariffs by the Trump administration yesterday.

In response, we placed a sell order at 12,350, aiming to profit from the prevailing risk-off sentiment. Investors are offloading stocks, shifting towards safe-haven assets due to increasing market uncertainty.

From a technical standpoint, a death cross has emerged—historically a strong bearish signal. Additionally, two consecutive Fibonacci retracement levels, which typically provide solid support, have failed to hold. Given this, we anticipate further downside toward the 61.8% Fibonacci retracement level, which often serves as final support.

Therefore, our take-profit (TP) is set at 12,000, aligning with this level. For risk management, we have a stop-loss (SL) positioned 2% above our entry price, ensuring a controlled risk-reward ratio.

With fundamentals and technicals aligned, we expect continued downward momentum in the Swiss stock market index in the short to mid-term.

Penafian

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