Things are looking pretty ugly for the Credit Suisse share price. The price recently attempted to break out of the downtrend. However, the news of the biggest loss in the firm’s history since the 2008 recession gave bears control. The weak fundamentals have led to an intense sell-off in the firm’s stock which is now trading close to its 2022 lows.
Latest Credit Suisse News
According to the most recent Credit Suisse news, the global investment bank has bought Klein’s Boutique. The latest $210 million deal will enable the Klein stakeholders to receive cash, convertible note, and warrants. Credit Suisse is now looking for more investors after taking over Michael Klein’s investment banking boutique.
As per the recent reports, the bank posted a $1.5 billion loss in the 4th quarter which put its annual loss at SFr 7.3 billion. During Thursday’s trading session, the shares of one of the biggest global lenders lost 16% in their value. At the time of writing, Credit Suisse stock price is trading at $3.02.
Credit Suisse Share Price Chart
The stock of Credit Suisse has experienced a massive collapse. The price is trading 80% below the February 2021 high of $14.95. The bankruptcy speculations have made the sell-off even more intense. The following chart shows a constant downtrend where the Credit Suisse share price has failed to break out of the downward trendline.
The price has formed a descending channel which also shows multiple attempts of breakout. The 200-day moving average has also been acting as a resistance since the price broke below it in January 2022. My outlook on Credit Suisse stock would remain bearish as long as the price reclaims the 200-day moving average. The indicator currently lies at $4.87.
The recent reveal of the colossal annual loss in 2022 has given the bears full control. In the coming days, I won’t be surprised if the price dips below the 2022 low of $2.98. After a break below this level, it might start to act as resistance.