Deutsche Bank - is a bad bank enough to rescue the EU banking?
market is within strong up trend structure and near two important resistance areas and need to break this up for another bigger up movement. Otherwise we will see correction movement to at least 7,46 which is first bigger support area. Wait for clear breakout above or under trend line before entering this trade.
1. down trend line resistance from end of May need to break up for another up wave
2. RSI line is near triangle formation resistance and need big volume to break above
3. MACD baselines going to cross bearish which brings sellers into the market within short term
After it was announced that the Deutsche Bank will establish a bad bank department to shift the outstanding debts there, the share price has risen strongly. In 2012/2013 this was already carried out successfully and saved the DB from bankruptcy. I expect that the bad bank will also be the last rescue for the DB this time, because a bankruptcy of the DB could be the starting signal for a European banking crisis and the EU wants to prevent that with all means. In fact the DB is already bankrupt if all open criminal proceedings with a high probability to the debit of the DB fail and outstanding payments are totaled.
In the second quarter, the radical restructuring and the elimination of thousands of jobs put Deutsche Bank even deeper in the red area than expected.
The consolidated loss amounted to 3. 15 billion euros after a profit of 401 million euros a year earlier. In addition, the bank felt the impact of its exit from stock trading ahead of schedule. CEO Christian Sewing doesn't want to lose any time. We're not just starting the transformation - after just two weeks we're already in the middle of it,"; he wrote in a letter to the employees on Wednesday when he presented the interim results.
1. down trend line resistance from end of May need to break up for another up wave
2. RSI line is near triangle formation resistance and need big volume to break above
3. MACD baselines going to cross bearish which brings sellers into the market within short term
After it was announced that the Deutsche Bank will establish a bad bank department to shift the outstanding debts there, the share price has risen strongly. In 2012/2013 this was already carried out successfully and saved the DB from bankruptcy. I expect that the bad bank will also be the last rescue for the DB this time, because a bankruptcy of the DB could be the starting signal for a European banking crisis and the EU wants to prevent that with all means. In fact the DB is already bankrupt if all open criminal proceedings with a high probability to the debit of the DB fail and outstanding payments are totaled.
In the second quarter, the radical restructuring and the elimination of thousands of jobs put Deutsche Bank even deeper in the red area than expected.
The consolidated loss amounted to 3. 15 billion euros after a profit of 401 million euros a year earlier. In addition, the bank felt the impact of its exit from stock trading ahead of schedule. CEO Christian Sewing doesn't want to lose any time. We're not just starting the transformation - after just two weeks we're already in the middle of it,"; he wrote in a letter to the employees on Wednesday when he presented the interim results.
Trade active:
short trade active
Trade closed: target reached
The analyses provided are for informational purposes only and do not constitute financial advice or recommendations to buy or sell anything. The information presented is based on personal research and interpretation.
