DB: Contrarian long opportunity

I'm pretty sure 97% of people were short DB             lately, and pessimistic about its outlook.
I was on that bandwagon, and shorting every rally for some time, but the latest developments made me change my mind on it. I think we have a great opportunity to long the stock here, if not already in that is.
I'm in with a 0.25% risk position, and will add gradually to it, until I reach 1% exposure.
We have to monitor the activity here, but it's possible this was a terminal wedge or ending diagonal pattern, in Elliott Wave parlance.

We can add to longs on a break of Friday's close, to the upside, risking a drop under the lowest low, and add more once we break above the earnings resistance above, at around 13.72, using the same stop loss.
We can also buy dips under 12.38 but I think it's unlikely to happen here. We need to reach 14.89 within 3 days to confirm the bullish momentum in the short term.

Good luck,

Ivan Labrie.
Comment: I added near today's low.
Comment: Looks good. Looking to buy gradually until I have a full position. Adding more tomorrow.
Comment: Ok, I have a full position now, I like the progress, and would like to see a rally above the earnings resistance at 13.72 quickly.
Comment: Good progress, let's see if it can cross the earnings resistance soon.
Trade closed manually: To be safe, 'bank' it here. (for now at least)
Comment: If we break above earnings resistance tomorrow I'll reenter longs.
Trade active: This is a solid close for $DB, I'm getting back into the long trade tomorrow at the open. Risking a drop to 11.95
Trade active: DB didn't hold support here, we can flip short:


I'm short Dax as well.
Comment: It can still hit 20.70 if it holds here and turns up again, breaking the recent high.
If not, the rally ended possibly, moving under today's low.
WIth all the media exposure, DB's number is just fine.
+1 Reply
What do you mean?
I think they are over reacting here. There were real issues that dragged the stock down but this type of sentiment extreme sets up a major squeeze.
Let's see how it goes...
HanmoGao PRO IvanLabrie
I dont think there will be default, their numbers are fine. The fine might be higher than 5B, but not gonna drag DB to collapse. I am long with it as well
+1 Reply
Yes, precisely!

Have to long aggressively early on. I'm adding on dips, still not a full position.
IvanLabrie PRO faris.makki
Thanks, let's see if we get the short. Salaam.
I traded DB today:)
+1 Reply
Hi Fay Lee, good to know, short side too?
faylee IvanLabrie
dear Ivan, i only trade for short term, not for trending
+1 Reply
Cool. :)
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