DeutscheBank Elliott Wave Analysis Still Calling Higher

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 move 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 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 Daily 02/08/2017

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 Daily 02/21/2017

DeutscheBank Recap :

The short term technical analysis for Deutsche Bank using Elliott Wave Theory is still supporting a bullish move to the upside after ending the current pullback as the stock,which ended both 2014 & 2015 downside cycles, still aiming for higher levels in the recovery .


Source :

 

AlienOvichO

Full time Trader & Analyst