Deutsche Bank (DB) was last reviewed at the end of June, where I wrote that "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."
DB finished the month of June at fresh lows but staged a recovery rally in July. Prices are sinking again and are weak this morning. Let's check the charts and indicators again.
In this daily bar chart of DB, below, we can see a lot of price gaps on the chart. Some of these gaps are because prices in New York are playing catch up with the trading in Europe, and some of these gaps are true gaps with heavy trading volume when the stock is hit with news during our regular hours.
Prices gapped lower on Friday and tested the 50-day moving average line. A gap below the 50-day line is likely today. The slower-to-react 200-day moving average line has been in a downtrend from early February and that is likely to stay in place for months to come.
The daily On-Balance-Volume (OBV) line improved in July but is weakening again in August as sellers of DB are aggressive again.
The daily Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a fresh take profits signal.
In this weekly bar chart of DB, below, we can see a long downtrend. The recovery in 2017 has been wiped out and prices are poised to make new lows. The 40-week moving average line is bearish.
The overall pattern of the weekly OBV line is bearish.
The weekly MACD oscillator crossed to a cover shorts buy signal but that could be reversed with the price weakness we have seen recently.
In this Point and Figure chart of DB, below, we can see a downside price target that could be overrun.
Bottom line strategy: DB could retest its June/July lows in the $11-$10 area and I would not rule out a break of those lows. Don't try to be a bottom picker.