Medium term
Trade view / 08 September 2016 at 8:13 GMT

Credit Suisse stock on the move

Trader /
United States

Looked at through a 20 year lens, shares of Credit Suisse look like something out of a horror movie. While the longer-term view on the stock is still very much in jeopardy from where I sit, in the near to intermediate term the stock is starting to signal more constructive patterns that could lead to a squeeze higher.

In early July CSGN stock plummeted to fresh lows, breaking below the early 1991 lows. While the stock has rebounded since, thus far it has simply worked its way back to the horizontal line in the low teens, i.e. what  used to be support... and this indeed could end up becoming resistance. 

As such, from this long-term perspective the stock is far from out of the woods and is keeping most institutional investors that I speak with far away. But therein may lie some opportunity...

Credit Suisse
Source: Saxo Bank

On the closer-up time frames of the daily chart we see that shares of Credit Suisse off the July lows have rallied more than 30% and while this was one heck of a trade already, the stock is in my eyes just now showing tighter technical patterns worth considering. 

Note that the stock recently pushed back above its blue 100-day moving average (a line it has not traded above since the third quarter of 2015). At the same time the stock is trading right below diagonal resistance and over the past few days has been consolidating in a tighter range. 

From here the stock stands a decent chance of breaking out of consolidation and past resistance to the upside.

Credit Suisse

Source: Saxo Bank

Management and risk description

From a risk management perspective traders will want to respect the possibility of some September/October volatility in markets, which if and when could also weigh on a stock like that of Credit Suisse. As such, any position size in this breakout trade should be reduced, i.e. less than a full position size.  


Entry: buy the stock or CFD at CHF 13.20 or higher.

Stop: CHF 12.60.

Target: CHF14 - CHF 14.50.

Time horizon: two to four weeks.

— Edited by Michael McKenna

For more on equities click here.

Non-independent investment research disclaimer applies. Read more


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail