DE30 halts upward move after reaching 13160 pts handle

• Mixed moods at the opening of the European session

• DE30 halts upward move after reaching level of double top from May-June 2018

• Daimler (DAI.DE) pulls back from the resistance zone after receiving a downgrade at Societe Generale and UBS

Reports saying that the US considers removing tariffs on Chinese goods worth $112 billion kept risk-on sentiment buoyed during the Asian trading hours. However, moods at the beginning of the European session were mixed. Spare for Russian and Spanish equities, major stock market indices from the Old Continent opened in the vicinity of yesterday’s closing prices.

Source: xStation5

DE30 delivered another solid upward move yesterday. The German index reached the 13160 pts handle, that is marked with the double top pattern from May-June 2018. Rally was halted there and the index began to trade sideways in between 13115 and 13165 pts handle. These levels should serve as the nearest, respectively, support and resistance over the short-term. A break above the 12165 pts handle would call for resumption of an upward move and could lead the index to 13530-13580 pts area where all-time high can be found. On the other hand, a break below the 12930 pts, the lower limit of the Overbalance structure (yellow box), would signal a reversal in a short-term trend.

DAX members at 8:12 am GMT. Source: Bloomberg

Vonovia (VNA.DE) reported Q3 earnings before opening of today’s session. Company’s funds from operations stood at €932.8 million after the first 9 months of the year, marking a 10.7% YoY increase. Rental income at €1.53 billion was 10% higher than a year ago. The German residential property company generated a profit of €63.4 million in the January-September period. The company plans to propose a dividend of €1.57 per share. Vonovia also said that it plans to significantly expand operations in Sweden after it acquired a majority stake in Hembla AB, the Swedish residential property company.

Supervisory of SAP (SAP.DE) approved plan for enhanced capital return in the next year. The German company is now authorized to repurchase shares or pay special dividend amounting to €1.5 billion by the end of next year.

Vietnam will impose a fine on Volkswagen’s (VOW3.DE) local distributor and importer to punish the company for featuring a wrong map on the navigation app. A map reflected Chinese territorial claims that Vietnam has rejected. Vietnamese authorities ruled that the authorized importer of the German carmaker in Vietnam will be suspended from operations for 6-9 months.

Daimler (DAI.DE) was downgraded at Societe Generale to “sell” from “hold”. UBS also downgraded the German company to “neutral” from “buy”.

Following three weeks of a strong upward move, price action on Daimler (DAI.DE) chart eased in the previous week. Share price of the German carmaker struggles with breaking above the resistance zone ranging around the 38.2% (€54.15) Fibo level of the downward move started in late-January 2018. Should the ongoing pullback last, bears may eye a test of the support zone ranging around the 23.6% Fibo level (€48.85). Source: xStation5