The financial and materials sectors of the stock market are sprinting higher as 2025 nears its end, and looking at Global Leaders in Investor's Business Daily's Screen of the Day shows Deutsche Bank and two gold names — DRDGold and Harmony Gold Mining — in or near buy zones.
Deutsche Bank shares, which have more than doubled in price this year, were rising in a cup-with-handle base ahead of the European Central Bank's expected decision this week to hold its key interest rates steady. Rates that were held higher for longer than anticipated have benefited bank stocks worldwide. DRD Gold and Harmony Gold also rose in cup-with-handle bases as gold prices returned to record highs.
Deutsche Bank Base-Building Leads To Buy Zone
Deutsche Bank, Germany's largest bank by assets, was trading inside a buy zone ranging from 36.83 to 38.67 on Monday. The New York Stock Exchange-listed shares have already soared about 120% this year.
The stock's pattern is third stage, considered a late movement. Shares on Nov. 10 broke out above a then-entry of 37.86 during a broad-based jump in equities, as investors saw encouraging signs that the U.S. government shutdown was nearing an end.
Deutsche Bank's current entry was established on Oct. 29. That's when shares climbed 4.1% after the financial firm unexpectedly swung to a third-quarter profit, aided by a revenue rise in its global investment banking business.
The bank stock ran into weakness after a Nov. 10 spike up to 38.78, including nearly undercutting its base on Nov. 20 when the stock market reversed lower. Investors eager for a Fed rate cut were spooked by the prospect that the fed funds rate held steady.
Since Nov. 20, the stock has been building the right side of its base, leading to its move into a buy zone.
DRDGold Gets Precious Metals Boost
Gold prices on Monday edged up to trade above $4,338 an ounce, approaching a two-month high. Bullion prices have surged nearly 63% this year, with the non-yielding asset growing more attractive to investors as the Federal Reserve signaled a move toward rate cuts.
The Fed began reducing the fed funds rate in September. Gold has also been playing its traditional role as a haven asset amid economic uncertainty and concerns about a pickup in inflation.
DRDGold on Monday was trading just below its 30.88 entry in the fourth stage of its pattern. Later-stage patterns tend to produce lower returns than early-stage ones. The gold stock marked a breakout day on Dec. 12, popping 4.5% and piercing into the buy zone as it bucked a broader drop in stocks.
Shares overall have pushed higher since Aug. 20 after the miner doubled its dividend and posted a 69% climb in quarterly earnings.
Harmony Gold Stock Sits In Buy Zone
Meanwhile, Harmony Gold was in a buy zone from 20.06 to 21.06. The gold stock's cup-with-handle base was in its second stage, considered an early stage. The shares held in the buy zone despite slipping during Monday's session. The stock posted its most recent breakout day on Dec. 10
Based in South Africa, the miner shot up to a high of 22.25 on Aug. 16 as gold prices surged on Fed rate-cut expectations. The stock then turned lower in the following session, sliding 8.9%. Its downward trend continued through Nov 4. before the price found upward traction.
Harmony Gold and DRDGold hold top-notch 99 Composite Ratings while Deutsche Bank has a 93 Composite Rating.
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