In yesterday's report, we broke down the Switzerland stock market into its major components and ran them through SIA's relative strength algorithm to ascertain any names that were driving the performance of its stock market. Our research led us to the top-performing name, ABB Ltd, but just below this name in the number 2 position was UBS Group AG ADR (UBS), which is also a top-performing name within the Swiss market and is the topic of today's report.
Shares of UBS rallied to the top of the SIA International ADR Report towards the end of July 2025 at a price tag of approximately $37 as it moved through a 2-year resistance band between $30 and $35, which we have illustrated in the attached weekly candlestick chart. Also presented is a measure of momentum with the ADX advance decline lines pointing to a growing spread between the positive DI (red) and the negative DI (green), along with the now surging ADX line (37.36) in blue, which, taken together with the relative strength on a point and figure basis, show that buyers are firmly in control of the supply and demand relationship.
As is typically the case, the SIA point and figure allows for more precision with regard to identifying breakout points, and given that we have engaged the SIA matrix position overlay tool, we can also easily observe the points when the shares of UBS began to lead the market and deliver alpha to investors. This new surge and corresponding relative breakout began in late summer as shares moved beyond the $35 mark, $35.33 to be precise, and completed a point and figure spread double top.
To calculate new resistance levels, we use the point and figure methodology from previous consolidation ranges to establish $43.93 and $48.50 as natural rest zones for UBS. Any pullback in share price might initially rest at the 3-box reversal level of $39.01 and the last breakout zone at $34.64. Also clipped to the point and figure chart is the Switzerland Equities Matrix from yesterday's report, which shows UBS in position #2 on this custom comparison. It also sits in position #49 on the SIA International ADR report when compared against 249 other international names on that star-studded report.
UBS shares carry an SMAX reading of 9 out of 10, which further supports its relative strength against a basket of alternative asset classes.
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