DE30 eyes a test of the 15,900 pts area

• European stocks trade higher

• DE30 jumps above 50% retracement of last week's drop

• 10 new additions to DAX index announced

Stock markets in Europe are trading higher during the first session of a new week. Gains can be spotted all across the Old Continent. Dutch AEX (NED25) is the European top performer today, gaining 1%. Blue chips indices from Germany, UK, France and Italy trade over 0.6% higher. Economic calendar for today is empty, and given absence of traders from US and Canada, trading during the day ahead is expected to be somewhat muted.

Source: xStation5

DE30 tries to recover from last week's losses today. Index launched a new week with a strong upward move and trades around 0.6% above Friday's close. While DE30 managed to break above the resistance zone marked with 50% retracement of last week's drop (15,850 pts), the advance was halted later on at the 61.8% retracement (15,880 pts area). In case bulls manage to clear this zone as well, the next resistance to watch can be found at 15,920 pts and is marked with previous price reactions. Note that trading today is expected to be somewhat muted, especially in the second half of the day, as traders from the United States and Canada are off for holidays. There are also no major data releases scheduled for today.

Company News

Qontigo, subsidiary of Deutsche BoerseNew DAX members and compiler of DAX  indices, announced new members of the German blue chips index that will make its way into the benchmark following an extension from current 30-member format to a new 40-member format. Changes will go into effect on September 20, 2021. Among stocks that will join the index one can find:

• Airbus (AIR.DE)

• Sartorius (SRT.DE)

• Puma (PUM.DE)

• Siemens Healthineers (SHL.DE)

• Porsche Automobil Holding (PAH3.DE)

• Symrise (SY1.DE)

• Brenntag (BNR.DE)

• Zalando (ZAL.DE)

• HelloFresh (HFG.DE)

• Qiagen

Herbert Diess, CEO of Volkswagen (DAI.DE), said that shortages on the semiconductor market may last months or even years as demand from the automotive sector remains high and demand from new branches of the economy, like Internet of Things, is likely to keep demand elevated. Ola Kallenius, CEO of Daimler (DAI.DE) said on Sunday that shortage may not be resolved until 2023.

Olivier Zipse, CEO of BMW (BMW.DE), said that his company boosted orders for EV batteries amid growing demand for electric vehicles. BMW now has outstanding orders for batteries worth €20 billion, up from previous €12 billion.

Share price of Volkswagen (VOW1.DE) attempts to distance away from the upward trendline that serves as the lower limit of the ascending triangle pattern. This pattern is considered to be a continuation pattern therefore continuation of the upward move looks to be the base case scenario. However, a break above the upper limit at 61.8% retracement of recent correction (€315.00) would be required for confirmation. Source: xStation5