$UHRN : Buying Swatch Group in a Zigzag Pullback

$UHRN : Buying Swatch Group in a Zigzag Pullback

March 21, 2024 By EWF Helgi

Swatch Group is a Swiss manufacturer of watches and jewellery. Besides the product line Swatch, the group owns brands including Blancpain, Breguet, ETA, Glashütte, Omega, Longines, Tissot, Hamilton, Certina, Rado and Harry Winston. As a matter of fact, the Swatch company employs about 36000 people in over 50 countries. Founded 1983 and headquartered in Biel/Bienne, Switzerland, it can be traded under tickers $UHRN and $UHR at Six Swiss Exchange. After printing the all-time highs in April 2014, the stock price has lost about 3/4 of the price by March 2020. Currently, we see Swatch starting a new larger cycle higher.

In the initial article from March 2021, we have called for a new cycle up. We were right. Then, we saw a pullback reseting part of the rise from March 2020 lows. In the second article from May 2022, we have analyzed the consolidation pattern and provided a buying area for medium- and long-term investors. Indeed, the stock has bounced from 40.95-29.82 area. We were right again. In the last article from January 2023, we were calling for next bullish cycle. That time, we saw a bounce, but it has failed. Now, the market is doing a zigzag lower providing with next buying opportunity. In the current blog, we provide an update including buying area and price targets.

Swatch Monthly Elliott Wave Analysis 03.21.2024

The monthly chart below shows the Swatch stock $UHRN traded at Six Swiss. From the all-time lows, the stock price has developed a cycle higher in wave ((I)) of a grand super cycle degree. Swatch has printed the all-time highs in April 2014 at 108.00.  Without any doubt, the advance is a textbook quality impulsive move up in 5 waves. Also, the subdivisions are motive waves, too. From April 2014 highs, a correction lower in wave ((II)) has unfolded as a double three pattern being 3-3-3 structure. It has reached the equal legs extension area towards 31.74-17.66. From that area, a strong reaction higher can be seen. Hereby, Swatch might be in the first stages of a new cycle in black wave ((III)) higher. While above 28.56, Swatch should extend towards the new all-time highs targeting the 135.96-202.34 area and even higher.

Swatch Elliott Wave Monthly

Swatch Weekly Elliott Wave Analysis 03.21.2024

The weekly chart below shows the intial nest consisting of red waves I-II of blue wave (I) in progress. From the March 2020 lows, red wave I has developed an impuls higher. It has ended in June 2021 at 64.30. From there, a pullback in wave II is unfolding as an Elliott wave zigzag pattern. Firstly, wave ((A)) has developed a leading diagonal being 3-3-3-3-3 structure. It has ended in July 2022 at 40.40. Secondly, a connector in wave ((B)) has printed a lower high at 62.95. Thirdly, wave ((C)) has broken July 2022 lows opening up a bearish sequence. Now, it should reach 38.99-28.56 area. There, black wave ((C)) of red wave II should end and next bullish cycle in red wave III should start.

Investors and traders can be looking to buy $UHRN from 38.99-28.56 area targeting 64.30-86.44 area in the medium-term and 135.96-202.34 area and even higher in the long run.

Swatch Elliott Wave Weekly

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