The technical picture of the Deutsche Bank AG (FRA: DBK) stock on our 4-hour chart shows that, yesterday, the share price formed a new high for May, by overcoming the 10.04 barrier, marked by the high of May 5th. Although we are now seeing a small retracement back down, as long as the stock stays above that 10.04 hurdle, we will continue aiming higher.
A rebound from the 10.04 zone may attract more buyers to join in, potentially pushing DBK towards the current highest point of May, at 10.31. If that barrier fails to hold, a break above it would confirm a forthcoming higher high and could open the door for a move to the 10.66 obstacle, or even to the 10.97 hurdle, marked by the low of April 22nd. If the buying doesn’t stop there, the next possible target might be at 11.51, marked by the high of April 21st.
The RSI and the MACD are both pointing slightly to the upside. Additionally, the RSI is sitting above 50 and the MACD continues to run above zero and the trigger line. The two indicators show positive price momentum, which supports the above-mentioned scenario.
In order to abandon the upside scenario, we would prefer to wait for a break below a short-term tentative upside support line, drawn from the low of May 12th. This way, the buyers might get spooked from the field temporarily, as further declines could be possible. DBK may then travel to the 9.29 obstacle, or even to the current lowest point of May, at 8.81. Initially, the stock could stall near that area for a bit, but if there are still no new buyers in sight, the share price might slide further, potentially aiming for the 8.16 level, which is the lowest point of March.
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