Tuesday, 20 September 2016

DB - breaks a new historic low

Whilst the broader market saw a day of minor chop, there was continued weakness in Deutsche Bank (DB), settling -4.3% @ $12.41. With the break below the July/Aug' double floor of $12.50/48, the door is now open to the psy' level of $10.00, before year end. Is the ECB watching?

DB, daily

DB, monthly, 20yr (linear scale)


From a pure price perspective, today saw a rather critical short, mid, and long term failure.

Where might the buyers appear?  The $10 psy' level is an obvious level.

Would single digit DB be possible without anything 'bad' happening? Absolutely.. although it would arguably indicate underlying systemic problems.

It should be clear... the market isn't pricing DB at new historic lows for 'no good reason'.