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Deutsche Bank but not Deutsche Qualität !

Deutsche Bank AG, NYSE: $DB, stands out as a very weak member of the banking sector.

Since 2008 the stock price continued to decline to almost one tenth of its peak value and it is only worth one third its value more than 10 years ago.

The long term trend is clearly down, with the 30-week average turning lower again and the price is close to breaking down from a contracting triangle pattern.

With an very weak relative strength compared with its peers’ group the risk is for an acceleration to the downside should the stock price close decisively below the lower triangle boundary.

Strategy:
– Wait for a close below $16 and sell a retest of the lower triangle boundary / 30-Week Moving Average.
– Stop-loss slightly above $18
– Target : previous historical low around $11
– Scenario invalidation if stock price fails to breakdown from the triangle

Disclosure: I have no position on Deutsche Bank.

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