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European indices trade higher
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DE30 fails to break above 15,680 pts area
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Allianz plunges after investigation news
Stocks in Europe trade higher at the beginning of a new week. However, a big part of the morning gains have been erased by now. Nevertheless, not a single blue chips index from the Old Continent trades lower today. Spanish IBEX (SPA35) gains 1.5%, while UK FTSE 100 (UK100) adds 1.1%, making them two top performing European indices. German DAX (DE30) lags behind trading 0.2% higher on the day.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 made a failed attempt of breaking above a mid-term resistance zone at 15,680 pts. Index pulled back below previous local high at 15,645 pts, that marks neckline of double bottom pattern, and deepened drop further. Support zone at 15,565 pts is being tested at press time. Note that this area is additionally strengthened by the 50-hour moving average (green line). Should bulls manage to defend this area, another attempt of breaking above the neckline may follow. Realizing textbook range of the breakout from the double bottom pattern would put DE30 on fresh record highs above 15,800 pts. In case index breaks below the zone at 15,565 pts, the 200-hour moving average (purple line) in 15,475 pts will be the first major support to watch.
Company News
Shares of Allianz (ALV.DE) trade lower today and stock is one of the worst performing DAX members. Company said that an investigation was launched against its Allianz Global Investors' Structured Alpha Funds by the US Department of Justice. Lawsuit was launched by a number of US pension funds accusing the asset manager of failing to safeguard value of assets during pandemic panic in early-2020.
Vonovia (VNA.DE) launched a new takeover offer for Deutsche Wohnen (DWNI.DE). This time Vonovia offers €53 for a share of Deutsche Wohnen. Previous €52 offer slightly missed the 50% threshold required in such tenders.
Daimler (DAI.DE) plans to keep 35% stake in its truck unit following spin-off. Shareholders of Daimler will receive one share of the new company (Daimler Truck Holding) for each 2 shares of Daimler they own. Final decision on spin-off will be made during an extraordinary general meeting on October 1, 2021.
Allianz (ALV.DE) slumped today following news of the US Department of Justice investigation. Stock plunged below support at €200, that also marked the lower limit of the Overbalance structure. Declines did not stop there and share price move towards the next support at €195, a 38.2% retracement of recent upward move. Next support can be found at 50% retracement in €186 area. Source: xStation5
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