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Fan Yang

Credit Suisse Group (CS) Attacking Range Resistance Around $12.55

In late March, we saw Credit Suisse Group $CS trade lower, and break its range support of $11.50. I saw this as a signal of further downside towards " the $10.23 2018-low, as well as the $10 mark, which was also a 2016-low."

Credit Suisse Group (CS) in a Bearish Breakout From a Consolidation Range

However, price very quickly rebounded, and is now heading towards the consolidation range resistance.

CS Daily Chart

(click to enlarge)

False Breakout:
- The failed bearish breakout suggests that bulls are still in control since late 2018.
- However, we can see that the overall trend is still bearish.
- In the short-term however, the false bearish breakout might translate into a bullish breakout above the $12.55-$12.60 resistance area. 
- But because of the prevailing downtrend, I would first anticipate resistance around $13.20, where the 200-day simple moving average (SMA) resides, and where price saw resistance in October-November 2018.
- I think after a pullback, we will know if the bulls are still in charge. If a pullback respects the current channel resistance area (around $12.55) as support, we can have more confidence of upside towards the $14 mark.
- There could also be upside to the $14.60-$14.65 area, which was a previous support. For now, I would limit any bullish outlook to $14.65-$15 area.
- If  price ever pulls back and breaks below $12 however,  I would abandon this bullish outlook and look forward to more choppy consolidation.

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