UBS’ stock has experienced significant swings following the takeover of Credit Suisse amid the ongoing turbulence in the global banking sector. Nevertheless, in the last couple of daily sessions, volatility seems to be subsiding, with the share price gaining some ground even if this rebound seems unconvincing.

The momentum indicators reflect a divergence between the price action. Although the stock managed to recoup some losses, the stochastic oscillator is descending steeply, while the MACD histogram remains below both zero and its red signal line.

Should this mild rebound falter, the price could challenge 17.30, which is the 50.0% Fibonacci retracement of the 13.81-20.78 upleg. Diving beneath that zone, the bears might aim for the 61.8% Fibo of 16.47 before the 78.6% Fibo of 15.30 appears on the radar. A violation of the latter could pave the way for the 2023 bottom of 14.30, which is the lowest level observed during the days surrounding Credit Suisse’s acquisition.

Alternatively, bullish forces could initially propel the price towards the 38.2% Fibo of 18.12. If that barricade fails, further advances could cease at the 23.6% Fibo of 19.14. Surpassing that territory, the price may ascend towards the recent peak of 20.00, which could be also considered a crucial psychological level for traders.

Overall, UBS’ stock appears to be returning to its low volatility days after the successful completion of Credit Suisse’s takeover. However, another round of systemic failures in the global financial sector could send the stock price on a wild ride again, with the aforementioned levels probably coming under examination.