CS dominated by bears dragging the market lower throughout the day
Credit Suisse Group American Depositary Shares (CS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CS finished the month 2.42% higher at 10.56 after gaining $0.10 (0.96%) today on high volume, slightly outperforming the S&P 500 (0.77%). The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (CS as at Jul 31, 2020):
Friday's trading range has been $0.36 (3.31%), that's far above the last trading month's daily average range of $0.18. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CS.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 9th, CS actually gained 3.22% on the following trading day.
Though Credit Suisse is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further buying might move prices higher should the market test June's close-by high at 10.97.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Its common bearish interpretation has been confirmed for Credit Suisse. Out of 496 times, CS closed lower 50.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.81% with an average market move of -0.31%.