Commertzbank : new down leg in sight ?

Commertzbank announced that it swung to a 1Q net loss of 295 million euros from a net profit of 122 million euros in the prior-year period

Downtrend 1

Commertzbank announced that it swung to a 1Q net loss of 295 million euros from a net profit of 122 million euros in the prior-year period, where the risk result increased fourfold to -326 million euros from -78 million euros due to the coronavirus effects. Operating loss totaled 277 million euros, compared with an operating profit of 246 million euros last year, on net interest income of 1.32 billion euros, up 7.2%. Also, CET1 ratio climbed to 13.2% from 12.7%. The bank adjusted its target for the CET1 ratio from at least 12.75% to at least 12.5% at the end of the year.

From a chartist’s point of view, the stock price remains stuck in a short term trading range between 3.87E and 2.8E. The daily Relative Strength Index (RSI, 14) has just broken below its rising trend line indicating that the trend could turn down again. Readers may want to consider the potential for short positions below the horizontal resistance at 3.45E. A break below 2.8E would validate a new bearish signal. The measured down move target of the range is set at 1.8E. 

Alternatively, a break above 3.45E would call for a test of the upper end of the range at 3.87E.

Source: GAIN Capital, TradingView

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.