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European markets trade higher
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DE30 once again reacts to 15,000 pts support
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Infineon released upbeat forecasts for fiscal-2022
Stocks in Europe are trading higher on Tuesday. While major stock market indices from the Old Continent dropped yesterday, declines were not as severe as in case of US indices yesterday or Asian indices today. One explanation for this outperformance is the small share of tech stocks in European benchmarks. Gains can be spotted all across Europe today, with Sweden being the sole exception. Italian FTSE MIB (ITA40) and Dutch AEX (NED25) are outperforming, gaining around 0.8% each.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 has been trading in a downward channel recently and has reached recent lows in the 15,000 pts area. Bears are struggling to push the price below this area. Another test was made today and it looks like bulls have once again managed to defend the 15,000 pts price zone. Index began to recover. Two near-term resistance levels to watch can be found at 15,080 pts and 15,110 pts. The former is marked with the upper limit of the downward channel while the latter is marked with a 50-hour moving average.
Company News
Infineon Technologies (IFX.DE) released full-year forecasts for the fiscal 2022 (October 2021 - September 2022). Company expects revenue to grow by "mid-teens percentage" and segment result margin of 20%. The company also confirmed a segment result margin forecast of 18% for fiscal-2021. Infineon boosted forecasts as demand for semiconductors remains strong and shortage is expected to remain over the fiscal-2022.
Volkswagen (VOW1.DE) has a backlog of orders of around 130,000 Golf models - or 4 months of output at its main facility in Wolfsburg, Germany. Backlog of orders for Tiguan SUV sits above 110,000 units while backlog of orders for Passat and Touran models is also said to be equal to "several months" of production. Situation is a result of a semiconductor shortage that made German carmaker either halt or reduce production at its factories.
In spite of releasing upbeat forecasts for fiscal-2022, Infineon Technologies (IFX.DE) has failed to see any major upward move. Stock launched today's trading higher but began to erase gains later on. The near-term support to watch is the 200-session moving average (purple line) that halted drops yesterday. Note that the stock broke below the lower limit of market geometry yesterday signalling a potential trend reversal. Source: xStation5
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