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


Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.