This chart is the shame they call Deutsche Bank. DB peaked in 2007 at 125 in front of the Great Recession (2008-2009 financial collapse) and drops to 8 an epic crash of -94%. What a flaming piece of garbage. A year and a half ago, investors thought they saw light at the end of the tunnel at 20, however, that light was an oncoming train and DB was crushed to a 7-handle this year. Can CEO Christian Sewing (pronounced "Saving") save the day?
Germany is Europe's economic engine. The Deutschland has benefited greatly from a weaker euro, created by the ECB, which boosts their exports. Germany is cars and cars are Germany. Comically, Commerzbank, another German bank, is another turd floating in the Western toilet, and there has been talk the last couple years to combine the two sick individuals hoping for a miracle cure. Combining Deutsche Bank and Commerzbank is like two drunkards holding each other up in Times Square on Saturday night.
All that above negativity aside, there comes a time when the bloodshed must stop. Humorously, the beatings will always continue until moral improves. After 12 years of sadness, DB is poised to recover. The European Banking sector is up big this morning. Perhaps traders are sniffing out undervaluation in this area, or, it may simply be easy money, created by the global central bankers, rotating from sector to sector. Banks may be the latest favorite flavor.
The monthly charts tell the longer-term story. DB was in real trouble in early 2016 when it crashed through the 2008-2009 financial crisis lows. The global central bankers colluded in early 2016 to save the stock markets, like they did this year, to protect the wealthy privileged class, but Deutsche Bank instead muddled sideways and collapsed over the last 1-1/2 years to its shameful lows in the 7's.
No one knows what Deutsche Bank's future is but the monthly chart says the long-term bottom is at hand. Price is trying to recover from oversold levels. The chart indicators are in universal positive divergence over the last decade and more. For this year, it would be nice for price to come down a little bit for another matching low which will provide possie d on the money flow for the last 3 months and confirm an all-systems go for the upside. The weekly chart already bounced off positive divergence and has been muddling sideways ever since. The weekly and monthly charts are agreeable that DB can move sideways to sideways higher here on out.
Price has violated the lower band so the middle band at 12.54, and dropping, is on the table. A move like that may be timed with some type of positive news. Of course, if negative news occurs, DB may retreat again. DB is extended to the downside below the ribbon of moving averages so price needs to revert to the mean (move higher).
As odd as it is to say, and perhaps DB may slide into further trouble, but the chart says the worst is over. Price may slip from 8.20 to 7.80 (Keystone's 80/20 Rule) but that should only serve to lock in the near-term possie d on the money flow. Keystone does not own DB but may buy some. The daily chart is in a choppy sloppy sideways move this year. Keystone will watch for now and would like to snag it at 7.80. Do not be surprised if DB surprises everyone going forward and moves sideways to sideways higher for the remainder of the year. DB is down -0.8% on Monday, 4/29/19, about 4 hours into trading, so the beatings are continuing until moral improves. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 1:36 PM EST: DB rallies +1.3% to 8.30. The banks are feeling love around the world today.
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