DB is a breakout candidate hiding in plain sight
The below excerpt came from Schaeffer’s annual and exclusive Stock Picks for 2025, each one carefully curated by our team of top traders. Click here to get your hands on our highly anticipated report of 18 stock picks.
German finance firm Deutsche Bank AG (NYSE:DB) has been slowly recovering from the financial crisis that hit more than 15 years ago. During the past decade shares have been very quiet, forming a long-term rounding pattern, suggesting a massive accumulation process. With a breakout above the $15 level in 2024 followed by a couple of retests, we believe 2025 holds promise for DB.
Another supporting factor is that the 50-week moving average (red line) crossed over a rising 200-week trendline (gold line). Short interest peaked in 2020 and has been moving lower since, but there remains potential buying power, as it would take five days for shorts to fully cover their positions.
Despite a 12-month average price target of $20.57, there is still pessimism among analysts, with three "hold" or worse ratings. In other words, Deutsche Bank stock looks ripe for bull notes.