Deutsche bank saw its shares slide by 4% after the bank reported its latest quarterly earnings.
The German bank has reported a net income of 229 million euros ($262.71 million) today, above the 149 million euros expected in a Reuters poll of analysts. However, the performance that corresponds to the third quarter of 2018 was 65 percent below what the bank reported a year ago.
Deutsche Bank has struggled since the global financial crisis of 2008 and the subsequent debt crisis in the euro zone. The German lender has faced billion-dollar fines, higher competition, decreased market share in both commercial and investment banking, as well as different management reshuffles.
Since the start of the year, the bank’s share price is down 40%!
One positive number from today was that the bank is now starting to control its costs and is finally on its way to become profitable in 2018. This would be the first time since 2014.
If we look at the longer-term weekly chart, we can notice that the downtrend has been going on since April 2010 and interestingly enough, throughout all these years this trend has always served its purpose as resistance.
I personally think that the stock is heavily undervalued now and its worst days are gone by. Furthermore, interest rates increase in the Eurozone should start sometime next year and this will further help the bank in generating more profits.
I think that the first test for the price will be to try and breakthrough the resistance created by the trend line emerging in August 2015. Should this occur, I am of the idea that more buyers will enter the market and push the price further up towards $15 per share.