DE30 makes major pullback at the beginning of cash session

• DE30 slumps after failing to break above the 50% Fibo level of the latest downward move

• Wirecard (WDI.DE) gains on 2025 target increase

• Airbus (AIR.DE) delivered 71 aircrafts in September

In spite of an upbeat moods spotted during the Asian trading hours, stocks in Europe opened mixed. Polish WIG20 (W20) was a top performer among blue chips indices from the Old Continent in the first minutes of Tuesday’s trading. On the other hand, Swiss SMI (SUI20) was the biggest underperformer at the opening. Nevertheless, the majority of the European stock market indices moved lower after the first quarter of the session.

Source: xStation5

The German DE30 failed to break above the resistance zone ranging below the 50% Fibo level (12150 pts) of the latest major downward impulse in the pre-market trading. The index is making a major retreat after opening of the European cash session and breaks below the 38.2% Fibo level. In case the move is continued, traders should focus on the 12020 pts handle as it is the lower limit of the Overbalance structure in the current upward impulse (yellow box). A break below it would call for a test of the support zone at 23.6% Fibo level (11970 pts). On the other hand, in case the bulls manage to shrug off early weakness, the aforementioned resistance zone could come into play. 

DAX members after the first 20 minutes of trade. Source: Bloomberg

Wirecard (WDI.DE) can be found among DAX top movers on Tuesday. The German payments company decided to increase its 2025 target. The company said its revenue in 2025 may exceed €12 billion while earlier it target revenue of over €10 billion. The revamp EBITDA target was set at €3.8 billion, up from €3.3 billion. Company also raised target for transaction volumes from €710 billion to €810 billion. Boost to 2025 targets is said to be an aftermath of strong partnership with SoftBank.

Airbus (AIR.DE) released orders and delivery numbers for September. The European planemaker received orders for 41 jetliners in the previous month and delivered 71 aircrafts. Companies order backlog stood at 7133 aircrafts at the end of September, comprising of 6203 single-aisle jets and 930 wide-body jets.

Deutsche Bank initiated coverage of EON (EOAN.DE). The German bank issued a “hold” recommendation for the stock and set price target at €9.20.

Continental (CON.DE) received a downgrade at Barclays. The UK bank lowered the rating for the stock from “equal-weight” to “underweight”. Price target was lowered from €130 to €115.