Deutsche Bank AG (DB) is in the news this morning, with the stock falling to a new low around $10.50 as it struggles with a number of fundamental issues. Let's dive into the charts and indicators now to see what might be a downside price target and tentative support.
In the daily bar chart of DB, below, we can see that prices have been below the declining 50-day simple moving average line since late January. The slope of the slower-to-react 200-day moving average line turned bearish in early February. The 50-day line fell below the 200-day average in March for a bearish dead cross of these two indicators.
The daily On-Balance-Volume (OBV) line made a peak back in December and has been trending lower all year telling us that sellers of DB have been more aggressive than buyers. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been below the zero line since early February telling us the trend was bearish.
In this weekly bar chart of DB, below, we can see that prices are poised to test and probably break the 2016 low around $10. Prices are well below the declining 40-week moving average line. The weekly OBV line has been moving lower the past seven months and suggests significant long liquidation or selling.
The weekly MACD oscillator is bearish and not showing much movement toward a crossover.
In this Point and Figure chart of DB, below, we can see the downtrend and a possible downside price target of $8.63.
Bottom line: It looks like DB is circling the drain, so to speak. There is no nearby support on the chart and the Point and Figure chart suggests a target of $8.63, but in a bear move and eroding confidence it is likely that this price target is overrun.