Why Deutsche Bank is key for U.S.market
Bryan McCormick | email@example.com
This week, however, has seen a sharp reversal from the highs of last week. And that could spell trouble if a key level gets taken out on the downside in coming days.
On the weekly chart below, shown in a three-year time frame, the support line in green marks the bottom of a short-term bullish channel. As of next week, support would be broken in that channel if DB were to slip below the $37 area.
We need to keep an eye on Europe's bank sector into next week because of their heightened sensitivity to changes in economic conditions. Deutsche Bank is the key stock in that group, so if the price channel breaks below $37, it will likely spell trouble for the U.S. financials and markets.
If instead DB holds or even advances, the wind will be at the back of the bulls. DB is trading at $39.03 this afternoon, up 4.9 percent on the day so far.
(Chart data provided by Thomson Reuters)