Chart Levels and Portfolio Rotation Give Deutsche Telekom a Two-Pronged Tailwind
Published on 07/21/2026 at 02:52 | Redaktion boerse-global.de
Deutsche Telekom shares have carved out a recovery from their June lows, but the real test lies just above current levels. The stock is trading at 27.13 euros, within striking distance of its 50-day moving average at 27.29 euros, and a clean break above that mark could open the door to further gains. The recovery has been underpinned by a substantial buyback program and a broader rotation into defensive stocks as the semiconductor sector suffers a severe sell-off.
Since July 1, the company has been executing the third tranche of its 2026 buyback program, with up to 560 million euros earmarked for share purchases exclusively on Xetra. The overall program, which started on January 5, authorizes up to 2 billion euros in repurchases through year-end. These steady buybacks have helped absorb selling pressure and provided a floor for the stock during the recent tech rout.
That rout has been dramatic. The Philadelphia Semiconductor Index has tumbled more than 19% from its June record high, dragging down names like Nvidia, Intel, TSMC, and ASML. Significantly, the downturn has occurred without a catalyst from disappointing earnings — TSMC beat profit expectations, and ASML raised its 2026 revenue forecast. Instead, investors are reassessing the entire artificial intelligence investment cycle, prompting a shift out of high-growth tech into more stable sectors.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Telecom stocks have been a natural beneficiary of this rotation. Deutsche Telekom’s latest quarterly results reinforce that status: organic service revenue rose 4.6% year-on-year in the first quarter of 2026, while organic EBITDA climbed 7.5%. Earnings per share came in at 0.54 euros, a 16.9% beat over consensus. The combination of steady cash flows and improving profitability makes the stock a logical haven for money leaving the volatile tech names.
Yet the stock is not without its risks. The company’s plans to fully merge with its U.S. subsidiary T-Mobile US have raised concerns among some investors, particularly over the possibility of a dilutive capital increase to finance the deal. Regulatory hurdles in the United States and a high shareholder approval threshold could complicate the transaction. So far, however, the defensive narrative has outweighed those worries.
On the charts, the 50-day line at 27.29 euros is the immediate hurdle. Above that, the next resistance levels sit at 27.88 and 28.21 euros, with the 200-day moving average at 28.70 euros still some 5.5% above the current price. The relative strength index at 56.8 suggests room to run. Should the stock fail to clear the 50-day line, support is expected in the 25.70–26.00 euro zone, with a stronger floor near 23.13–23.47 euros. For now, the convergence of a buyback-fueled recovery and a macro shift toward defensives gives the stock a solid base, even as the T-Mobile question lingers.
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