Update Credit Suisse (US) - Squaring Out
When will the bottom be reached? This may be sooner than later!
Introduction
The Credit Suisse Group stock continues to be in a downslide. The outflows of deposits in this bank has not stopped yet, despite efforts of the bank to attract clients with higher rates as you can read in this newspaper report. Also Bloomberg reported that “The cost of insuring Credit Suisse bonds against default climbs to the highest on record”.
This bank was already in tumbling for almost 16 years. When will this end?
As mentioned in last week’s post I do not know. This bank could go down and cease operation or be rescued by another bank.
Applying the knowledge of Gann, we may get some insight into when price and time from relevant highs and lows will be set. So far the downslide is on a steady pace $0.01 per calendar day. From the low of October 30, 2020, at $9.28 it is only 928 days towards zero at May 16th 2023.
When the dashed lines hits zero, the square out in time and price will take place. It is not necessary for the stock will reach $0.
Time is more important than Price, as W.D. Gann mentioned in his courses, but when they come together there is a higher probability for a change in trend. If it ends at zero that may imply the company may have stopped to be trading on the stock exchange. On all of the dashed line price and time are in balance from th earlier point where the dashed line started.
On April 28th 2023, Venus will hit the same degree (47.48 Helio) as on the crest in 2007. Venus is all about value and perhaps by this time people have lost faith in the value of this bank. This may be a good point for a possible low in this stock. This also falls right in the middle of two eclipses; the solar eclipse of April 20th and the lunar eclipse of May the 2023.
On the other hand a bottoming process may take longer than expected and it may take until at least October of this year before a bottom in Credit Suisse may be in place. There are various other square outs in Time and Price until 2029. This may hint at a longer-term bottoming process if Credit Suisse stays in operation and make a turnaround.
Disclosure: No positions at the time of writing.
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