The share price of Credit Suisse (CS) has been under pressure for a long time, but recently it has made new lows for the move down, as Brexit weighs and lows of 2009 provided no support.
The panic lows of 2009 are like scars that don't go away with time, but when capitulation lows are broken, it is an event of its own.
Watching this decline in the price of CS the past 12 months, chart above, has almost been painful. Prices are below the declining 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line has been pointed down and down. There has been heavy volume of trading since February -- this can mark a low, as aggressive selling meets aggressive buying, but with the OBV line making new lows, the sellers still have the upper hand.
There is a bullish divergence between the lower lows in price and higher lows from the momentum study in February and March, but it has not generated a recovery. The triangle-like or rectangle-like pattern of prices since February suggests a downside price target near $10.
This weekly chart of CS, above, reinforces the bearish daily chart. Prices are well below the declining 40-week moving average line. The OBV line on this timeframe is pointed down and there is no support in sight. The pace of the decline has recently slowed, but the downtrend continues.