Date: 20 Feb 2019

Deutsche Bank shares have been plummeting for weeks and months. There are no reference values from previous years at such low prices. This makes it very difficult to determine structural levels in the chart.

At the end of January 2019, the first fundamental reports came through the media that Qatar might want to increase its investment in the bank. The country’s sovereign wealth fund, the Qatar Investment Authority, is already a significant shareholder of Deutsche Bank and, according to a report in the “Handelsblatt” dated 18 February 2019, continues to see this as a good possibility.

On the other hand, the Chinese major investor HNA has just reduced its commitment to the paper. With such contrasting views, it is a good time for technical analysis of Deutsche Bank shares.

Deutsche Bank’s general downward trend has been dragging on for years, often accompanied by short-term upward corrections.

The downward trendline originated in December 2017. The first attempt to push through it failed and was followed by a retest of the recent lows.

Last Friday the market regained an essential level at 7.50 with a momentum candle. However, this outbreak has not been sustainable so far and was retested yesterday.

The MACD offers no clear signals. The MACD line and the trigger line are parallel to each other, and the histogram has reached its zero line, so the signals are neutral.

The area around 7.50 is important for further rising prices. If this holds we may see higher prices. The next resistance is then in the range of 8.16. If this can be overcome without a problem, the way to the area of 9.12 could be cleared.  For this, the market would have to overcome resistance at 8.65.

If the positive trend continues, a further recovery in the region of 10.60 could take place.

However, if the market falls, support in the 7.07 or 6.73 range could wait. All prices below this are uncharted territory as the bank moves towards new all-time lows.

 

DBK.GE Daily Chart | Source: ActivTrader

DBK.GE Daily Chart | Source: ActivTrader 

 

Written by Daniel Schuetz, External Analyst

 

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