Analyst warns of impending wave of sales in Deutsche Telekom shares

Analyst warns of impending wave of sales in Deutsche Telekom shares

According to a report by stock3.com, Deutsche Telekom shares fell by 2.48% in the morning. The federal government may consider selling part of its stake in Deutsche Telekom to plug a budget hole caused by a ruling by the Federal Constitutional Court. The federal government currently holds 30.5% of the shares and a reduction to 25% + 1 share is being discussed, which could potentially put strategic selling pressure on the share. The share has been in a sideways movement for around 20 years, but has been trading steadily above this movement since October 2022. It is predicted that the share price could come under pressure in the next few days and weeks and could fall to EUR 20.98 and later possibly even to EUR 19.00-18.63. However, if there is a breakout above EUR 23.12, the rally could continue immediately.

The federal government's potential share sales could weigh on the stock for a longer period of time and should be considered by investors in the short-medium term. Aggressive traders might even consider taking a short position.

It should be noted that the federal government's decision to sell shares could affect not only Deutsche Telekom shares, but also the entire market and the financial industry. Uncertainty about possible sales may lead to a general wave of selling that could impact the overall performance of the financial sector. On the other hand, a possible breakout of the stock above EUR 23.12 could also have a positive impact on the market and lead to a general rally. Developments should therefore be monitored closely in order to make well-founded investment decisions.