Deutsche Bank Shares Jump 2.83% Extending Three Day Rally to 4.51% on Strong Technicals

Deutsche Bank (DB) shares closed at $31.28, rising 2.83% in the latest session and extending gains for a third consecutive day, bringing the total three-day increase to 4.51%. This recent momentum forms the backdrop for a comprehensive technical assessment.
Candlestick Theory
Recent price action shows a decisive bullish reversal. Following a test of support near $29.90 (aligned with the lows of 2025-07-17 and 2025-07-18), DB formed three consecutive white-bodied candles with progressively higher closes. This sequence culminated in a strong breakout candle on 2025-07-23, closing near its high and breaching the recent resistance zone around $30.60, established on 2025-07-21. This suggests bullish conviction. Immediate resistance is now evident around $31.38-$31.60 (the high of the breakout candle and a psychologically significant level). Support has solidified near $30.50 (prior swing high) and the critical $29.90-$30.00 zone.
Moving Average Theory
A bullish long-term trend is in place, with the current price ($31.28) positioned above the 50-day (approx. $29.70 based on historical data), 100-day (approx. $27.20), and 200-day (approx. $24.60) moving averages. Notably, a bullish ‘golden cross’ occurred around May/June 2025 when the 50-day MA crossed decisively above the 200-day MA, signaling a shift towards a sustained uptrend. The shorter-term 50-day MA recently provided dynamic support during the pullback in July. The alignment of price above rising short, medium, and long-term MAs underscores the prevailing positive trend structure.
MACD & KDJ Indicators
The MACD (12,26,9) likely triggered a bullish crossover below the signal line around July 21st/22nd as prices rebounded off the $29.90 support. The MACD histogram has since been expanding positively, confirming accelerating upward momentum alongside the price breakout. The KDJ indicator (likely settings 9,3,3) shows the %K line crossing above the %D line in oversold territory near the $29.90 support, initiating the recovery. Both J and K are currently rising sharply and are positioned above 70 as of the latest close, nearing overbought territory. This confluence strengthens the near-term bullish signal but warrants monitoring for potential overextension.
Bollinger Bands
Bollinger Bands (20-day, 2 std dev) contracted notably during the early July consolidation phase (around $29.40-$30.40), indicating reduced volatility and a potential coiling of energy. The decisive breakout above $30.60 occurred as the bands began to expand, confirming the initiation of a new volatile trend phase. Price is currently trading near the upper band, suggesting strength but also highlighting the possibility of a short-term pullback or consolidation phase developing as momentum stabilizes. The breakout move expanding beyond the upper band often signals strong directional conviction.
Volume-Price Relationship
The bullish breakout on 2025-07-23 was validated by a significant surge in volume (4.7 million shares), substantially exceeding the recent average, confirming strong buyer participation and conviction behind the move above key resistance. Furthermore, during the three-day advance, each day saw increasing volume with the price rise, a classic sign of accumulation. Prior to the breakout, volume tapered off during the consolidation, suggesting a lack of selling pressure at support. Current strong volume affirms the sustainability of the uptrend.
Relative Strength Index (RSI)
The 14-day RSI has risen sharply from oversold territory near 35 during the mid-July low to approximately 69 as of the latest close. This reading places the RSI approaching the overbought threshold (>70). While this suggests waning upside momentum in the very short term, the RSI is still below overbought levels and in an established uptrend. Importantly, prior oversold readings (below 30) in April 2025 and November 2024 coincided with significant intermediate lows, highlighting its value as a contrarian signal when extremes are reached. The current climb towards 70 acts as a warning flag but not necessarily an immediate reversal signal within a strong uptrend.
Fibonacci Retracement
Applying Fibonacci retracement levels to the major advance from the early March 2025 low near $18.89 to the May 2025 peak near $28.95 reveals key levels. The significant pullback in June/July 2025 found reliable support near the 50% retracement level ($23.92) before reversing higher. The recent consolidation occurred just above the 38.2% retracement level ($25.67) of the subsequent swing high in late May (approx. $29.65) to the July low ($29.43) before breaking out. This $29.43-$29.90 zone is now major support. The 161.8% extension level from this recent swing low to the late-May peak, projected upwards, offers a potential next target around $32.60-$32.80 if the current momentum persists, although resistance at $31.38-$31.60 must be overcome first.
Conclusion
Multiple technical indicators exhibit confluence, strongly suggesting Deutsche Bank is in a robust bullish phase. The price breakout from consolidation on high volume, supported by bullish MACD and KDJ signals and occurring above significant moving averages, indicates substantial underlying strength. Candlestick patterns confirm bullish conviction, while the Bollinger Band expansion signals renewed directional volatility. Key near-term support lies at $30.50 (prior breakout point), with a more critical zone at $29.90-$30.00. Immediate resistance is $31.38-$31.60. While the RSI nearing 70 and price approaching the upper Bollinger Band may indicate a potential short-term pullback or consolidation is possible soon, the overall technical structure favors maintaining an upside bias as long as the price holds above the $29.90-$30.00 support confluence. A decisive close above $31.60 could pave the way for further gains towards the Fibonacci target of $32.60-$32.80. Continued monitoring of volume on pullbacks will be crucial for sustainability.