Monday, 19 September 2016

DB - close to breaking a new low

Whilst the broader market saw a few moderate swings across the day, there was notable weakness in the financial monster that is Deutsche Bank (DB), which settled -3.3% @ $12.94. A break below the July/Aug' double low of 12.50/48, would be a major problem.

DB, daily

DB, monthly


Without going over what is regularly stated in literally thousands of postings across the financial blogosphere each month, Deutsche Bank continues to broadly struggle.

The ultimate issue remains the mountain of derivatives held by DB. Estimates typically range around $70 trn. Even a 1% 'problem' on such a number would amount to a massive shock to the EU, and to a lesser extent, the world financial system.

From a pure price perspective...  the July/August low is now at serious threat of being taken out. If so... next support is not until the psy' level of $10, which is currently around 25% lower.

If DB slips into single digits... it would merit as a serious alarm bell for the EU financial system.

DB is unquestionably one very important stock/institution to monitor... regardless of whichever side of the Atlantic ocean you might reside.