Credit Suisse (US) - Squaring Out
When will the bottom be reached?
Introduction
Yesterday the Nasdaq Global Banking Index made quite a tumble based on the bad news that was received about the Silicon Valley Bank - SVB Financial Group when shareholders were selling their stakes in this bank.
The worries about their holdings in bonds with continuous stress on raising interest rates was probably a cause of it. There may be other banks that face the same problem. So, also some European banks got hit.
A follower of the Fiorente2 Newsletter asked about the Credit Suisse Group. This bank was already in tumbling for years. When will this end?
Frankly, 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. In the below chart, you can see how this works out.
Squaring out in Price and Time is a simple technique anybody can apply. Taking a vibration of $0.01 for this stock (may be different for other stocks), each high will square out in calendar days, just 100 x the relevant high.
So, when the dashed line 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.
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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