DE30 drops and tests upward trendline

• Stocks in Europe trade mixed

• DE30 tests upward trendline

• Lufthansa gains after US eases travel restrictions

Stocks in Europe are trading mixed on Wednesday. Equities from Germany, UK, Spain and Italy drop while indices from France, the Netherlands and Russia gain. Overall, the scale of moves in most cases is minor. UK FTSE 100 (UK100) can be seen as top laggard, dropping around 0.5%, while Russian RTS (RUS50) outperforms, gaining around 0.5%.

Source: xStation5

DE30 retested all-time highs in the 15,730 pts area yesterday but was unable to break to a fresh record. Resistance zone ranging below 127.2% exterior retracement of the early-June correction remains a key zone to watch for bulls. However, following a failure to break the fresh record, DE30 began to move lower and dropped below the short-term support zone at 15,650 pts. German index found itself in an interesting place as it is currently testing the upward trendline, drawn with local lows starting from mid-May. Dropping below this hurdle could pave the way for a test of a key mid-term support zone ranging below 15,550 pts. 200-hour moving average (purple line) can be found slightly above this zone.

Company News 

Lufthansa (LHA.DE) is trading higher today along with other European airlines. The United States eased restrictions on travelling. Restrictions were eased for countries like Canada, France, Germany, Japan or South Korea. Decision comes as the pandemic situation in the developed world continues to improve. Fraport (FRA.DE), operator of Frankfurt airport, is also trading higher.

S&P Ratings confirmed the rating of the German utility company E.ON (EOAN.DE) at BBB/A-2. Outlook was left unchanged at "stable"

Bayer (BAYN.DE) and BASF (BAS.DE), along with other companies, face antitrust action in the United States. Court will look into a scheme carried out by a group of 4 companies, whose goal was to boycott electronic distribution platforms for seeds and pesticides.

According to a Bloomberg report, Airbus (AIR.DE) plans to start taking orders for the freighter version of its A350 jet next month. Planemaker is said to be in talks with over 12 potential customers and wants the Board to authorize marketing of a new type of plan in the coming weeks. Currently, the market for cargo airplanes is dominated by Boeing.

Lufthansa (LHA.DE) gains after the US decided to ease travel restrictions on numerous countries. Share price of the German airline halted declines near the 38.2% retracement of the upward move launched in September 2020 and began to recover. Stock is testing the 50-session moving average at press time (€10.80 area, green line). In case bulls push the price above this hurdle, an upward move towards the resistance zone at €11.20 may be on the cards. Source: xStation5