DEUTSCHE BANK AG (DB)
Company Profile
Belonging to the Financial industry, Deutsche Bank AG. engages in the provision of corporate banking and investment services. The company was founded by Adelbert Delbrueck on March 10, 1870 and is headquartered in Frankfurt am Main, Germany.
What Happened?
In the aftermath of the 2008 crash, Deutsche Bank’s success began to unravel. It had been one of the largest purveyors of junk bonds, selling about $32bn worth of collateralized debt between 2004 and 2008, but its traders were also betting against that market in order to line their own pockets. Greg Lippmann, Deutsche’s former head of asset-backed securities trading, even referred to some bonds as “crap” and “pigs” in emails to colleagues, all the while promoting them to investors as A-grade. The stock price dropped from a High of $121 to $4.44 (less than 1/2 of Book Value).
However, recently shares of DB have made new 52-week Highs on Thursday Feb. 6, 2020 after snagging a major new investment from fund giant Capital Group. The Los Angeles-based fund manager revealed a 3.1% stake in the bank in Frankfurt on Thursday,
This has caused a technical Break Out on the stock above $9.34. which now should become Support. This could also mean that many Investors agree that the Company will no longer go broke. It could also be acquired way below the All Time High of $121. As a result, its Relative Strength as evidence in the daily chart is now 98.
When to Buy?
DB is currently Way Above the Green Line. We will wait to Buy when DB returns to the Green Zone for a Daily Money Wave Buy Signal.
Objective
Above the Green Line is watching DB for a long term investment.
Follow the Rules: Above the Green Line + Above 90 Relative Strength
