Date: 22 May 2019

Deutsche Bank is currently struggling on many fronts. The last of these, the failed merger negotiations with Commerzbank, has been weighing on the share price for weeks. In yesterday’s early trading, Deutsche Bank marked a new all-time low of €6.58. This could set the tone for tomorrow’s Annual General Meeting.

Investors at the AGM will be interested in the Bank’s business relations with Donald Trump and also the future of investment banking and corporate banking. After the failed merger talks, further restructuring measures may be necessary to reduce costs. These measures could be to the detriment of earnings.

On the other hand, Deutsche Bank is trading far below its book value. The question, therefore, is whether, with yesterday’s low, the share price has bottomed out.

There’s no good news from a look at the chart. With yesterday’s low, the market reached unchartered territory so it is difficult to identify structural points in the chart.

The zone around €6.75 will be decisive for further development. If the market can regain this area, the next significant structural level could be at €7.00. If the market can break through here, structure levels remain at €7.23, €7.44 and €7.66 and then the April highs around €7.90.

On the other hand, if the bulls cannot dominate the market and the stock continues to plummet, support could be found in the €6.42 area. If the market breaks through here, downwards, a decline to a possible technical level in the €6.00 area could be likely.

 

DBK.GE - daily chart. Source: ActivTrader

DBK.GE Daily Chart | Source: ActivTrader

 

Written by Daniel Schuetz, External Analyst, ActivTrades

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