DE30 tests 15,850 pts resistance zone

• Stocks in Europe trade lower

• DE30 tests upper limit of triangle pattern at 15,850 pts

• Delivery Hero to raise €1.25 billion via convertible notes offering

Majority of the blue chips indices from Europe trade lower on the final trading day of the week. However, the scale of declines is minor and does not exceed -0.4%. UK FTSE 100 (UK100) are among few indices to trade higher but in this case scale of advance is minor as well and does not exceed +0.2%. German DAX (DE30) trades more or less flat.

Source: xStation5

Following wild price swings at the beginning of the week, the situation on the German DAX index has calmed somewhat. DE30 manages to stay above the upward trendline but has been struggling to break back above the 15,850 pts resistance. As a result, a short-term ascending triangle pattern surfaced on the chart. Direction of the break from this pattern may determine mid-term moves on the index. Today's release of the US NFP report for August at 1:30 pm BST is likely to boost volatility and may be a catalyst for large moves on stock and FX markets. In case of a break below the aforementioned trendline, the first near-term support to watch can be found at 15,770 pts.

Company News

German DAX will undergo a makeover. Index will be expanded from the current 30 members to a new format of 40 members, effective September 20, 2021. Requirements for the membership will also change. In order to qualify for inclusion stocks will need to meet additional criteria, like 2 years of positive earnings. List of 10 new stocks that will join the index is set to be unveiled today (most likely after the close of the European cash session).

Delivery Hero (DHER.DE) wants to raise up to €1.25 billion via convertible note offering. Two types of notes will be issued - one maturing in 2026 and the other maturing in 2029. Company has reportedly already received enough orders to fully cover sales.

Analysts' actions

• MTU Aero (MTX.DE) upgraded to "buy" at Societe Generale. Price target set at €225

• Varta (VAR1.DE) rated "sell" at Metzler. Price target set at €106

• Nemetschek (NEM.DE) downgraded to "buy" at Bryan Garnier. Price target set at €96

MTU Aero (MTX.DE) launched today's session higher following an upgrade received at Societe Generale. Stock attempts to bounce off the lower limit of the trading range at €192.50. The 50-hour moving average (green line) dropped below the 200-hour moving average (purple line), painting a pattern known as the "death cross" (orange circle). This is considered to be a bearish signal but it should be noted that it is subject to a lag. Source: xStation5