CS is a potential bottoming play with what i believe is a very nice risk/reward ratio but be aware that bottoming plays should be considered aggressive trades. also keep in mind that the european financial crisis is far from over and if things go from bad to worse, then credit suisse will likely be leading the procession of large bank failures. with that being said, CS broke above this bullish falling wedge (daily chart), with nice positive divergence in place to boot.
from a weekly perspective, volume patterns could be indicating a possible selling climax lately as prices have fallen to a critical, multi-year support level. positive divergences on the MACD and RSI as shown on the weekly frame as well. my plan on this trade will be to start scaling in tomorrow (assuming the price remains around current levels) for a long-term trade with a fairly liberal stop below the lows (17 area), which i will adjust upward as/if the trade pans out. targets are marked and with the markets still offering a very opaque near-term technical picture, i can’t state a preferred target with confidence at this point. this trade will be added to the long-term trades section as it does have the potential for significant gains over time but again, there is virtually NO SUPPORT below the recent lows so do not become complacent with your stops if you decide to take it.
