UBS (NYSE: UBS) stock price appears to be recovering after an 18% drop in the last two weeks. This month has proved to be the worst month of the year for major global banks as their shares dropped to YTD lows. UBS share price also made fresh yearly lows last week as it dipped to $17.99.
UBS Group is currently the biggest investment bank in Switzerland. It had a revenue of 34.6 billion in 2022. Its stock is listed on both New York Stock Exchange and Six Swiss Exchange under tickers NYSE: UBS and SWX: UBSG, respectively.
After a massive sell-off this month, UBS stock price rebounded during the European session on Tuesday. This also resulted in a price increase during the pre-market hours across the Atlantic. The stock opened higher on NYSE and was showing positive price action till press time. The Nasdaq bank index also opened higher after a rough start of the week.
This week started with the news of the UBS Group taking over its rival Credit Suisse as a result of a government-engineered deal. UBS shareholders appeared not to be happy with the development as UBS share price dropped after the announcement. In the 3.25 billion acquisition deal, the swiss government also pledged $9 billion to UBS Group for the possible losses after this takeover.
Despite the shaking investor interest in global banks, UBS stock is still maintaining the uptrend on the higher timeframe. The recent pullback and the Credit Suisse takeover failed to take the price below its December low of $17.6. This signifies that the long-term investors are still not selling in anticipation of a recovery.
As long as the price remains above the 200-day moving average, our UBS stock price forecast will remain bullish. However, considering the industry-wide bank runs, the price may get rejected from the $21.5 resistance once again.
This post was last modified on %s = human-readable time difference 15:30