The underlying outlook remains bearish with monetary tightening and economic slowdown
Longer term, the outlook remains negative as central banks tighten monetary policy in a slowing global economy. The European and American economies could even tip into recession this year, which makes the hypothesis of new annual highs for the indices unlikely in the coming months.
Therefore, a return to the April high at 12,500 points would be an attractive price level to look to secure profits and possibly look to position to the downside, as a recession in Western economies would cause stock markets to pull back. above recent lows. A return of the SMI below 11,000 points would be expected.
Entrance: Purchase between 11,500 and 11,800 points
Stop: 11,400 points
Objective: 12,200 points, then 12,500 points
Risk/Reward Ratio: >1
Follow the evolution of the SMI price with IG.