The Deutsche Bank (NYSE:DB) stock chart since 2012 includes many examples (at least 23) of magical V shaped recoveries where the stock price was literally a falling knife and some buyer still came in and bought the shares to try and paint the tape to produce a share price recovery.
However, since 2014 the share price has been in a very clear downtrend with lower highs on rallies and rallies do not last for long. The last major rally in the share price was from 9/22/2016 through 1/22/2018.
Coincidentally, the rally started almost immediately after Deutsche Bank was initially going to be fined $14 billion dollars from the US Department of Justice (DOJ) for the bank's role in selling fraudulent mortgage backed securities. However, after begging and pleading about the fines being too large and it potentially bankrupting the bank, the fine was lowered. https://www.theguardian.com/business/...
Still after 1/22/2018 it seems that shares of Deutsche Bank have entered a terminal velocity phase with all rallies being shorter in duration and weaker in size and share price rally.
Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason's work at his blog website at www.jasonburack.com.