Credit Suisse (CS) has been trading sideways for most of 2016. Since July, our daily indicators suggest base building, but a longer-term perspective of the weekly chart argues for more basing action in 2017.
In this one-year daily bar chart of CS, above, we can see an early July price low followed by an on-again, off-again recovery. Stepping back a bit from the screen/chart, the overall pattern of price action looks like a bottom pattern with a "fulcrum low" around mid-year. On the left-hand side of the chart, the moving averages are declining and the daily On-Balance-Volume (OBV) line is also declining. A downward sloping OBV line suggests that sellers have been more aggressive, with more shares traded on days when CS has closed lower.
Heavier volume on a "down day" suggests that sellers are more anxious to get out of longs. On the right hand side of the pattern, we can see that the 50-day moving average line has turned up and the OBV line is rising. Into the June-July low the volume is heavy, signaling some "throw-in-the-towel" selling.
In the lower panel is the 12-day momentum study, which has a bullish divergence in June and July as prices made lower lows the momentum study made equal lows. In November and December, prices have made higher highs and so has the momentum study -- a positive.
In this longer-term weekly chart of CS, above, the base pattern on the daily chart is not so impressive. Prices are above the 40-week moving average line, but the slope of the line is still flat. The rising OBV line on the daily chart suggest some good accumulation since July, but this weekly chart is uneven.
The weekly Moving Average Convergence Divergence (MACD) oscillator has been recovering all year and looks poised to cross the zero line for an outright go long signal. Because of the uneven OBV line, this chart of CS suggests that more sideways price action between $13 and $16 would help the broaden the base.
Bottom line -- aggressive and patient traders can look to buy weakness in CS, risking to $12.