DE30: Bulls hold short-term support at 15,150 pts

• European indices trade mixed

• DE30 tries to hold 15,150 pts support

• Allianz to be among bidders for Reintel

Stocks from the Western Europe are trading mostly lower on Monday. German DAX (DE30) and French CAC40 (FRA40) drop around 0.2% while Spanish Ibex (SPA35) and Italian FTSE MIB (ITA40) trade 0.4% lower. However, upbeat moods can be spotted in the eastern part of the Old Continent with Russia RTS (RUS50) gaining 1% and Polish WIG20 (W20) trading almost 0.9% higher. Calendar for today is empty and partial market holiday in the United States may contribute to lower volatility in the later part of the day.

Source: xStation5

DE30 trades slightly lower at the beginning of a new week. Upward moves of the German index continue to be limited by the 200-hour moving average (purple line). After another failed attempt of breaking above this moving average, the index pulled back and dropped below the support zone marked with the 38.2% retracement (15,150 pts area). Buyers attempt to push the index back above this hurdle. Should they manage to do so, the outlook would become less bearish as the 15,150 pts area also serves as the lower limit of the short-term trading range. There are two key near-term resistances to watch. The first one is the aforementioned moving average, currently in the 15,210 pts area. The second one is the upper limit of the trading range - a zone ranging between 15,250 pts and 50% retracement (15,270 pts).

Company News

Cofepris, Mexican health regulator, rejected a bid by Bayer (BAYN.DE) to grant approval for German company's corn GMO in Mexico. Bayern criticized Mexican authorities for lack of scientific justification for the rejection. Mexico has grown increasingly adverse towards GMOs since Andres Manuel Lopez Obrador took over as president. It was the first time Mexican authorities issued an outright rejection for the GMO permit.

According to the Expansion report, Allianz (ALV.DE) as well as KKR and Axa, will take part in an auction of the 49% stake in Reintel, Red Electrica fibre-optic unit. Subsidiary of Red Electrica may be valued at €1.2-1.3 billion in a deal.

While rejection of a bid for GMO permit in Mexico is not positive news for Bayer (BAYN.DE), the company said that the financial impact of the decision will be minimal. Stock is trading higher today and has managed to break above the 200-period moving average on H4 interval (purple line). A €48.35 resistance zone is being test at press time and should we see a break above, the way towards 38.2% retracement of recent correction in the €49.50 area will be left open. Source: xStation5