02. December 2020 | 11:59 CET
Deutsche Bank, dynaCERT, NEL ASA: Two paths lead to returns
If you want to be successful in the stock market, you can pursue different investment styles: Known examples are value or growth strategies. Other investors, on the other hand, are more oriented towards market or chart techniques. Two approaches are promising here: Either one jumps on existing or emerging trends, or one buys completely counter-cyclically and tries to fish the bottom when prices are rising. The latter was a worthwhile undertaking in the case of the Deutsche Bank share. Within the past twelve months, the Deutsche Bank share has gained more than 40%. But what are the next steps for value?
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ISIN: CA26780A1084 , DE0005140008 , NO0010081235
Deutsche Bank: The proud money house and the gambler's paper
From a technical chart point of view, the next significant resistance is above the EUR 10 mark. Taking this hurdle could be difficult for the price. However, there is further upside potential above this level. And what is the real picture? Most recently, Deutsche Bank was able to increase its earnings surprisingly significantly after nine months of the financial year. The investment banking business, in particular, performed well. At the same time, Deutsche Bank is busy saving money, revealing the whole dilemma: on the one hand, the formerly proud model bank must grow in order not to be swallowed, and on the other hand, costs must be reduced. The stock has become a speculative paper. Investment banking decides the fate of the Company.
dynaCERT: Rollercoaster share picks up speed
The dynaCERT share is also a volatile turnaround candidate. The Company has set itself the goal of retrofitting existing vehicle fleets with its catalytic converters and thus saving fuel and CO2. These catalysts bear the name HydraGEN and ensure that a mixture of air and hydrogen is fed to the engine, which results in the positive effects mentioned above, as confirmed by independent laboratories. The initial aim is to equip fleets in cities with the technology. In the past months, several customers have already been acquired. The fact that dynaCERT is part of the UN program "United 4 Smart Sustainable Cities" also helps with sales.
Last year, the share went on a rollercoaster ride: between EUR 0.27 and 0.87 was traded. For a few days now, the stock has been bouncing back after a consolidation phase lasting several months. The market has come to realize that retrofitting existing combustion engines could be a sensible middle course to protect the climate. Only recently, an ARTE documentary on the climate sins of electric cars and wind turbines caused a stir (click here for a summary of the documentary). Due to its volatility and the low market penetration of the HydraGEN technology, the dynaCERT share is highly speculative. For this very reason, it can offer attractive opportunities to experienced investors.
NEL ASA: From all-time high to an all-time high
NEL ASA is another Company that stands for a green turnaround in transportation, outside the realm of classic electromobility. The Norwegians are responsible for the production, storage and distribution of hydrogen. Hydrogen is considered a potential fuel of the future. Unlike electric cars whose batteries have to be charged, hydrogen vehicles could be refueled at existing filling stations. The market believes this technology has a future and sent the stock up by a whopping 40% within a month.
But the NEL Asa share is also a hot topic. From a technical chart point of view, it is noticeable that the value has hit its head twice beyond the EUR 2.40 mark. Although this resistance zone is not apparent in the long-term chart, traders with a short-term orientation, in particular, could see the latest price development as a warning signal.
Momentum beats chart technique
Regardless of whether Deutsche Bank or NEL ASA: At first glance, both stocks seem to have run hot. If the existing resistance is overcome, however, new potential can arise in both stocks - both comeback stories and hot trend stocks are difficult to stop with the appropriate momentum. The dynaCERT share is currently building this momentum. The leaving of the consolidation range, which exists since the end of August, could be a signal for chart-oriented traders.