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European markets trade higher
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DE30 jumps above 14,060 pts resistance
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ThyssenKrupp CEO wants steel unit to be financially independent
In spite of Asian indices moving lower, European markets are trading higher on Monday. Sell-off in Asia, and US futures, has been driven by the underperforming tech sector and it could explain outperformance of European equities as the tech sector plays a smaller role in the European economy. Taking a look at the US futures we can see that all three major US indices are trading lower with Nasdaq futures dropping over 1.5%.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 bounced off the 38.2% retracement of a recent upward impulse overnight and jumped back above the 14,000 pts mark. The German index is once again attempting to break above the upper limit of the Overbalance structure at 14,060 pts. Traders should keep in mind that this is an important short-term resistance as it is additionally strengthened by the 23.6% retracement and previous price reactions. DE30 tested this zone shortly after the futures market opened after the weekend but was unable to break above it. However, this time the index actually managed to jump above the zone. Moreover, a sequence of higher lows have been painted recently therefore if the index manages to stay above 14,060 pts for longer, it may be on a good track to retest all-time highs at around 14,200 pts.
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While European stock markets are trading higher in general, there are some stocks that are booking significant decline. The so-called "pandemic winners" are among today's worst performers with HelloFresh (HFG.DE) dropping 6%, TeamViewer (TMV.DE) declining 3% and Delivery Hero (DHER.DE) trading 2% lower.
Martina Merz, CEO of ThyssenKrupp (TKA.DE), said that the company's steel unit must make an effort to cut costs in order to become independent from the Group financing. Talks between ThyssenKrupp and Liberty Steel over sale of ThyssenKrupp's steel unit broke down last week as the two companies could not reach consensus on value and funding of acquisition. Making the steel unit profitable and financially independent could help ThyssenKrupp find another buyer or make listing of the unit easier.
ThyssenKrupp (TKA.DE) is trading higher today and looks to be readying for another attempt of breaking above the €12.00 resistance zone. The index tested the area last week and in mid-February but failed to break above it. In case price fails to break above it, a pullback towards recent local lows and the lower limit of the Overbalance structure at €10.78 may be on the cards. Source: xStation5
