Banks merger talks, GER30 consolidates gains

GER30, Daily

Deutsche Bank and Commerzbank are now involved in merger talks, after weeks (months)  of speculation about a possible tie-up between the two German lenders. Deutsche’s shares were up 3% in early trading and Commerzbank was 4% higher.

The GER30 is lower today by 0.3%, Deutsche Bank remains a component, Commerzbank; slipped out of the blue chip index in September last year as its market capitalization continued to fall. Unions claim that up to 30,000 jobs (mainly in Germany) could be lost.

The GER30 remains in a six-week uptrend following the breach and break of the 20-day moving average on February 15. Next resistance is at 11,730, (T2 from the Crossing EMA Strategy would be at 11,735) which is the 50.0 Fibonacci level and the 50-day moving average. Beyond that is the key resistance confluence at 11,800. This  represents a key round number, the 200-day moving average and the 50-week moving average. The 61.8 Fibonacci level also coincides with the Upper Bollinger band  at 12,070.  Support is the 20-day moving average at 11,500, the 38.2 Fibonacci level and 50-day moving average at 11,400-350 zone and the 23.6 Fibonacci level and psychological 11,000.