Looking at the technical picture of the Deutsche Bank stock (ETR: DBK) on our daily chart, we can see that from the beginning of June, the share price has been moving lower, while trading below a short-term tentative downside resistance line taken from the high of June 8th. Last week, the stock found support near the 200-day EMA. Nevertheless, we will stay bearish with the near-term outlook, as long as DBK trades below that downside line.
If the stock eventually falls below the 10.10 zone, which is the current lowest point of July, this will confirm a forthcoming lower low and would also place the price below the 200-day EMA, this way possibly attracting more sellers into the game. DBK could then travel to the lowest point of April, at 9.70, where the price might get held, or it may even rebound back up a bit. That said, if the stock struggles to bypass the aforementioned downside line, another drop could be possible. If this time DBK is able to overcome the 9.70 obstacle, this will confirm another forthcoming lower low, where the next target could be the 9.20 level, marked by the low of February 18th.
The RSI and the MACD are both pointing lower. In addition to that, the RSI is still below 50 and the MACD continues to run below zero and its trigger line. The two oscillators show negative price momentum, which is in line with the idea mentioned above.
Alternatively, if the share price breaks above the short-term downside resistance line taken from the high of June 8th, that may attract more buyers into the game, especially if the stock also rises above the 10.75 hurdle, which marks the low of June 30th and the high of July 7th. This way, DBK could get pushed towards the high of June 25th, at 11.22, a break of which may clear the path towards higher areas. That’s when we will aim for the 11.76 barrier, or for the 11.87 zone, marked by the high of June 14th and the low of June 10th respectively.
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