Market Analysis

Another party interested in Commerzbank?

The union between Deutsche Bank and Commerzbank has been discussed for a long time. A decision should have been made before Easter, but the negotiations are protracted. As media reports show, the resistance within Deutsche Bank is probably high.

According to the German “Manager Magazin” website, the major Dutch bank ING is interested in Commerzbank. According to the magazine, Commerzbank CEO, Martin Zielke has not pushed the talks for the time being but has not completely ruled them out for the future.

A look at the Commerzbank chart shows a slow but steady increase since the beginning of January. With yesterday’s candle, the market reached a critical structural level. The lows of the summer and late summer months of 2018 were pierced from below. However, yesterday, the market found resistance at €8.10.

If the uptrend continues, then the next resistance might be in the €8.35 range. If this is breached easily, there may be further resistance in the €8.90 area. Should the bulls not be deterred, the next, larger, more significant resistance might be in the €9.80 range.

If the current structural band between €8.10 and €8.35 turns out to be too strong for the bulls, then the extension of the trendline could be the first support for the market. Further support levels could be in the €7.60, €7.20, €6.87 and €6.55 areas.

The MACD oscillator is in positive territory. The two lines are reasonably far apart. The histogram is following the price movement.

CBK.DE - daily chart. Source: ActivTrader

CBK.DE Daily Chart | Source: ActivTrader


Written by Daniel Schuetz, External Analyst

*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.

All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided.