Shares of Credit Suisse (CS) has been under selling pressure for much of the past three years. There is little technically positive in the short run to get excited about but a longer-term bullish divergence might eventually set the stage for a recovery.
In this daily chart of CS, above, we can see that prices made new lows before the "Brexit" vote. CS broke below $12 and then rebounded to the underside of the declining 50-day simple moving average line. Prices gaped down recently and volume surged. The On-Balance-Volume (OBV) is pointed down.
In this weekly chart of CS, above, we can see that prices are well below the declining 40-week moving average line. The weekly OBV line is bearish.
In the lower panel is the 12-week momentum indicator or study. Prices made a low in February and a lower low in June but the momentum study is making a much higher low giving us a bullish divergence. A bullish divergence is not an immediate buy signal as it only shows that the rate of change of prices has slowed. Typically, the pace of decline in prices will slow into a low as investors find the prices more attractive the lower they go.
More development is needed to build a base to support a new advance but at least the downside momentum has slowed.