Swatch expects a profit this year – Support level at 187.15CHF

Swatch, the Swiss watchmaker, announced that it swung to a 1H net loss of 308 million Swiss franc from a net profit of 415 million Swiss franc in the prior-year period.

Trader 3

Swatch, the Swiss watchmaker, announced that it swung to a 1H net loss of 308 million Swiss franc from a net profit of 415 million Swiss franc in the prior-year period and operating net loss amounted to 327 million Swiss franc, compared with an operating profit of 547 Swiss franc previously. Also, net sales declined 46.1% on year (-43.4% at constant rates) to 2.20 billion Swiss franc, citing "state-ordered closings of at times up to 80% of distribution channels worldwide". Regarding full-year outlook, the company stated: "The Group's management is convinced that the sales and profit situation will improve quickly in the coming months, parallel to the further easing of Covid-19 measures in the countries. A positive operating result is expected for the full year."

From a chartist point of view, the stock price is oscillating within a short term symmetrical triangle pattern since March 2020. Prices are accelerating above the upper Bollinger band on a daily chart. This may indicate that a continuation of the rebound is likely as long as 187.15CHF is support. Next resistance zone is set between 209.2CHF and 214CHF. A break above this resistance zone would open a path to see 240CHF. Alternatively, a break below 187.15CFH would call for a reversal down trend with 168CHF as first target. 

Source: GAIN Capital, TradingView

More from Equities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account