DE30 finds support in the 15,550 pts area

• European stock markets trade higher

• DE30 tested upper limit of the channel

• Heidelbergcement gains after preliminary Q4 earnings

European stock markets launched today's session higher but have erased part of the gains after the start of trading. Nevertheless, blue chips indices all across the Old Continent trade higher. Indices from Western Europe trade 0.7-1.0% higher while Russian equities outperform with RTS gaining 1.6%. 

Source: xStation5

DE30 broke above the 15,550 pts price zone marked with 50% retracement of the downward move started at the beginning of 2022. Index continued to move higher until it reached the upper limit of the upward channel in the 15,675 pts area, where the advance was halted. DE30 pulled back and retested the aforementioned 15,550 pts price zone as a support. If the retest is successful and upward move is resumed, a test of the resistance zone marked with 61.8% retracement 15,720 pts cannot be ruled out. Should sellers take over and push the price below 15,550 pts zone, 50- and 200-hour moving averages in the 15,450 pts area may provide some support.

Company News

Heidelbergcement (HEI.DE) said that it expects Q4 revenue to reach €4.7 billion, above the €4.5 billion reported in Q4 2020. Result from current operations is expected to reach €661 million, above €648 million last year. Full-year 2021 revenue is expected to reach €18.7 billion, an increase of 8% year-over-year. Full results will be released on February 24, 2022.

Airbus (AIR.DE) reached an agreement with labour unions. Months-long dispute related to the aircraft parts unit that the company wanted to sell. In other news, it was reported that Airbus and Lockheed Martin partnered up to develop aerial tankers for the US Air Force.

Analysts' actions

• Hugo Boss (BOSS.DE) upgraded to "buy" at Stifel. Price target set at €70.00

• SLM Solutions (AM3D.DE) rated "buy" at Jefferies. Price target set at €22.00

Shares of Heidelbergcement (HEI.DE) launched today's trading higher following the release of upbeat Q4 preliminary results. However, gains were erased as the session passed and the stock is now testing the €62.50 price zone marked with 23.6% retracement of the 2021 downward move. In case bulls manage to defend the area, attention may shift to resistance at 38.2% retracement (€66.00 area). Source: xStation5