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DE30 bounces off the 33-period moving average on H4 interval
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Wirecard (WDI.DE) jumps higher on strategic partnership with SoftBank
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Deutsche Post (DPW.DE) shares are pressured by FedEx profit warning
European investors launched Tuesday’s trading in upbeat moods. Gains can be seen all across the Old Continent with just a few exceptions. Among those one can name Russian and Portuguese equities. On the other hand, Swedish, Italian and Dutch large-cap indices are posting the biggest gains.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appDE30 is bouncing higher today in an attempt to shrug off yesterday’s weakness. Declines were halted at the 33-period exponential moving average (green line, H4 interval). According to the Overbalance methodology, the bullish setup is valid as long as the price stays above the 12115 pts handle (range of the largest correction during the current upward impulse). Somewhat higher lies the 12210 pts handle, that saw price reaction a few times over the past few months. When it comes to the resistance levels to watch, the first one is localized above the 12420 pts handle. It is the resistance zone that was tested a few times in July. In case of a break above, the attention will shift to 12575 pts handle that lies just slightly below YTD high and is marked by local peaks from June and July.
DAX members at 9:52 am BST. Source: Bloomberg
Wirecard (WDI.DE) can be found among best performing DAX stocks in the first hours of Tuesday’s session. The company signed a strategic partnership agreement with SoftBank. Two companies will continue to pursue global growth opportunities together and execute synergies arising from their cooperation. Moreover, Softbank will support Wirecard in its planned expansion to Japan and South Korea.
Covestro (1COV.DE) is also trading higher today. In this case it is due to an upgrade the company has received at Goldman Sachs. The US bank raised the recommendation for the stock from “neutral” to “buy”. New price target was set at €53 (previously at €48), implying an over 30% increase against yesterday’s closing price.
Deutsche Post (DPW.DE) is the worst performing DAX member today. The company sinks along with other logistics stocks after FedEx (FDX.US) decided to slash profit outlook for the fiscal year 2020. Deutsche Post spokeswoman commented saying that the company does not see any changes in the volume trends in its business. However, it was not enough to soothe investors’ nerves.
Deutsche Post (DPW.DE) share price took quite a significant dive at the beginning of today’s trading and found itself below the local high from late-July. Stocks is continuing retreat after failing to overcome the resistance zone ranging above the €31 handle. In case sentiment towards the stock remains sour, one cannot rule out a pullback towards the 200-session moving average (purple line) that runs just slightly above the support zone marked by 23.6% Fibo level of the downward move started in January 2018. Source: xStation5
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