technicals, page-26

Hi Alpha,

The simplest answer is that CS are not the only players in the market. But it is a probably a bit more complicated than that and Mitta may be able to explain better than me.

I imagine it depends on how many shares they own and how big their pockets are on which strategy they use.

Since early May they have been accumulating and the share price has been in a channel. Every time they move the price up to test the demand the price gets swamped with sellers so they go into accumulation mode again. There is no point pushing the price up if you are going to be over run by the sellers as that can be a very expensive exercise.

So what they do are tests. A supply test will test for supply and strangely enough it is done by pushing the price down a bit. If you can push the price down and there are no sellers panicking to get out then you know it is time to do a demand test.

So they push the price up a bit , and if there is no demand the price will be in a small bar and there will be little volume.

So you end up with the price see-sawing between highs and lows in the channels.

The positive aspect here is that Credit Suisse have over 40M shares and its pretty unlikely they will want to let the price drift much below their accumulation zone or they can lose control. So they make the zone their battle ground and depending on the depths of their pockets and their strategy will keep on absorbing until the sellers disappear.

On shorting - Credit Suisse has done very little shorting this year as seen in their disclosure notices.

I also apologise for the chart as the registration between volume and price was a couple of bars out.