Deutsche Bank (DB) has rallied in the past two months to the top of a large trading range. Can prices break out on the upside and how far might they rally? Let's dig into the charts and indicators to see if we can answer these investment questions.
In this daily bar chart of DB, below, we can see that prices have moved between $15.50 on the bottom end and $19.50 on the top end since late 2016. DB has crossed above and below the 50-day average line several times and is currently above the rising 50-day lie as well as the rising 200-day measure. Earlier this month the 50-day line crossed above the 200-day line for a bullish golden cross signal. The volume pattern is mixed but the On-Balance-Volume (OBV) line gives a clearer picture with a rise from April to July and from late October to now. A rising OBV line tells us that buyers of DB have been more aggressive. The Moving Average Convergence Divergence (MAC) oscillator moved above the zero line in early November for an outright go long signal.
In this weekly bar chart of DB, below, we can see the long sideways consolidation pattern. Prices are now above the slightly rising 40-week moving average line. The weekly OBV line is creeping higher and the weekly MACD oscillator just crossed above the zero line for a buy signal on this time frame.
In this point and figure chart, below, we can see a triple top breakout at $19.43 as a price target of $23.82.
Bottom line -- if DB can follow through on the upside a longer-term rally to the $23-$26 area is possible.
