DEUTSCHE TELEKOM AG (DTE.DE)

Technical analysis

Price	€ 16.32	52 weeks range	€ 14.60 - € 18.92
Beta	0.72	Volume/ average	4.2m/ 9.6m
Sector	Communication	Dividend	3.95%

Deutsche Telekom AG is a German telecommunications company headquartered in Bonn and the largest telecommunications provider in Europe by turnover.

DTE from August 2021 has started a long retracement that now sees it oscillate at a strong support level: the divergence with internal indicators makes us lay the foundations for a possible recovery in the medium term.

Price

Analyzing the current price at € 16.320, we can see the lateralization in place from December 2021 between € 15.500 - 16.300 which in our opinion could soon break upwards with the passing of the bearish trend line.

The substantial difference between the current swing and the previous consolidation between October-November 2021 is that we believe the current support at € 15,500 corresponds to the strong resistance level of the period June 2020 - March 2021 thus making it a likely area for a bullish reversal.

Indicators

Looking at the MACD and RSI indicators: both show a positive divergence with the price fluctuation. MACD is close to an upward crossing and RSI has just exceeded the level of 50. The upward alignment of both indicators supports the thesis of a possible extension in the medium term.

Moving averages

We believe that the strong watershed for short-medium term fluctuations is in this case the 50MA: in recent months the latter has played the role of "active resistance", rejecting any possible extension of the stock. We believe support at € 15,500 is allowing for a gradual breakout of the 50-day average.

Conclusions

At current price, we believe DTE is close to an upside reversal, breaking the recent downtrend line.

Price swings could, in our view, be supported by both a breach of the 50-day average and a combined rise in MACD and RSI.

Entry range € 16.00 - € 16.50

Target 1 € 17.50

Target 2 € 18.80

Stop loss € 15.00