CS closes within previous day's range
Credit Suisse Group American Depositary Shares (CS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CS ended Wednesday at 11.04 gaining $0.12 (1.1%), significantly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CS as at Sep 16, 2020):
Wednesday's trading range has been $0.30 (2.75%), that's far above the last trading month's daily average range of $0.20. 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.
The share managed to close back above the 20-day moving average at 10.97. Unable to break through the key technical resistance level at 11.10 (R1), Credit Suisse closed below it after spiking up to 11.18 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 10.87 in the previous session, the market found buyers again around the same price level today at 10.88. The last time this happened on September 11th, CS gained 4.00% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 11.31 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 10.87 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Credit Suisse. Out of 306 times, CS closed lower 64.38% 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 53.27% with an average market move of -0.89%.