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European stock markets trade lower
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DE30 retest 38.2% retracement
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Volkswagen cuts production at Wolfsburg factory
Stock markets in Europe continue to move lower. DAX is trading 0.5% lower on the day and reapproaches recent local low. French CAC40 and UK FTSE 100 trades around 0.25% lower each. FTSE MIB is top laggard in Europe, dropping 0.7% , while Swedish equities are among a few to gain.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 failed to break back above the resistance zone ranging above the 23.6% retracement of the upward move launched in mid-July (15,800 pts area), that more or less coincides with the upper limit of local market geometry. Index turned lower once again and once again tested the support zone at 15,645 pts, where the 38.2% retracement can be found. Breaking below a recent low will pave the way for a decline towards the 50% retracement in the 15,530 pts area. There are no major data releases scheduled for today so trading may remain relatively calm. The nearest big event for equities is next week's Fed meeting Jackson Hole with Powell's speech on Friday, August 27 being the highlight.
Company News
Volkswagen (VOW1.DE) announced that due to a stretched supply chain and shortages on the semiconductor market it had to cut production at a factory in Wolfsburg, Germany. All production lines at the site will operate only during one shift next week.
Stock is deepening the correction today. Shares broke below the price zone ranging above 61.8% retracement of the upward move launched at the beginning of July 2021. After a move lower at the beginning of today's trading, bulls have managed to halt decline in the €280.00 area. An attempt of breaking back above the aforementioned retracement is being made at press time. In case buyers fail, shares may drop towards the support at €275.00.
Source: xStation5
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