In September 2016 , the media was calling for the collapse of DeutscheBank as its shares were dropping to new all time lows and Investors were worried about another financial crisis . However in our previous article , we were expecting a recovery for Deutsche Bank stock as the technical picture was pointing to an ending diagonal taking place to finish at least the cycle from 03/14/2016 peak and start a short term bounce .
In the recent 4 months , DeutscheBank stock (DB:NYSE) managed to do an impressive +90% run tearing apart theories about its crash and reaching our first target of the recovery at the 38.2% Fibonacci area $20.76 . The move from September 2016 low can be labeled as 5 waves leading diagonal Elliott Wave structure which currently ended at 01/25/2017 peak and could be the first leg of an impulsive move or just wave A of a Zigzag Elliott Wave structure .
As the stock was expected to correct the cycles from the lows , then a double three correction was put in place for the pullback to happen with the first inflection area coming at equal legs $18.83 – $18.45 where DB can resume higher or bounce in 3 waves at least .
DeutscheBank bounced from the mentioned area and held below 01/25 peak , so as long as $20.94 stays intact then DB will be looking to make the double correction toward equal legs area $17.95 – $17.45 where buyers are expected to show up for at least a 3 waves bounce . The 50% – 61.8% area of the rally comes at $16.06 – $14.91 which can be in play if the next bounce fail below the previous peak .
DeutscheBank Recap :
Deutsche Bank ended both 2014 & 2015 downside cycles and currently still aiming for higher levels in the recovery. The short term technical analysis for the stock using Elliott Wave Theory is supporting a bullish move to the upside after ending the current pullback which doesn’t need to make the double correction as it already made 3 swings lower and could resume higher from current levels .
If you enjoyed this article, feel free to navigate to our Technical Blog and also check our Chart of The Day .
For further information on how to trade forex, indices, commodities and stocks using Elliott Wave Theory , try us 14 days for FREE . You will get access to our Professional Elliott Wave analysis in 4 different time frames, Daily Elliott Wave Setup Videos , Live Trading Room and 2 Live Analysis Session done by our Expert Analysts every day, 24 hour chat room support, Weekly Technical videos and much more so if you are not a member yet, use this opportunity and sign up to get your FREE trial .