Positive things happening at Deutsche Telekom
Something important appears to be happening at this German telecoms operator which still trades significantly below its peak 24 years ago. Independent analyst Alistair Strang explains.
3rd July 2024 07:37
by Alistair Strang from Trends and Targets
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Trend lines can prove fascinating, and we notice Deutsche Telekom AG (XETRA:DTE) is providing a perfect example of something which may be quite important.
The German company's share price topped out in March 2000, literally the peak of the dotcom bubble, and similar to so many other members of this ridiculous market spike, DTE's share price was soundly thrashed. It then spent the following 20 years doing very little, but now there are early warning signs something positive may be happening.
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Usually we’d prefer taking this sort of thing with a pinch of salt, but when DTE’s price movements this year are examined, for some reason a 24-year-old line is visually playing some part in share price movements.
This is liable to prove significant for the longer term if the historical high above €100 is still regarded as part of the trading cycle. Currently, the share price would need to close below €20 to spoil the party and effectively cancel our immediate cautious optimism.
Source: Trends and Targets. Past performance is not a guide to future performance.
The immediate situation with Deutsche Telecom looks quite interesting, though falls some distance away from being a multi-bagger potential.
Above €23.75 now calculates with the potential of near-term movement to an initial €24.5 with our secondary, if bettered, calculating at a confident looking longer term €26. Overall, the only number we can calculate with potential for trouble sits at €33, a price level which if achieved has the potential to provoke some market hesitation.
If things intend to go totally wrong, the share price needs below €20 to risk triggering reversal to an initial €17.7 with our longer-term secondary, if broken, at a future €13.4 and hopefully a bottom.
We suspect this shall hopefully prove worth keeping an eye on.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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