Technical Update - SMI 20 breaking resistance, likely cancelling reversal pattern. Set for higher levels Technical Update - SMI 20 breaking resistance, likely cancelling reversal pattern. Set for higher levels Technical Update - SMI 20 breaking resistance, likely cancelling reversal pattern. Set for higher levels

Technical Update - SMI 20 breaking resistance, likely cancelling reversal pattern. Set for higher levels

Equities 1 minute to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

SMI20 closed yesterday above resistance at around 11,334. Combined with the RSI closing back above 60 threshold thus re-confirming positive sentiment SMI is likely to move higher potentially cancelling the top and reversal pattern formed end- January (circled).

A move higher to the May 2023 peak at around 11,616 within few points the 1.382 projection at 11,630 is in the cards
A daily close above 11,616 could see SMI pushing higher to 11,730 level.

There is still RSI divergence but if RSI is closing above its falling trend line – where it is in currently – it is a strong indication of higher levels

A close back below 11,315 will place Smi back in neutral demolishing the bullish scenario. A close below 11,057 will establish a bearish trend

Source all charts and data: Saxo Group
SWISS 20 cfd levels: 
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