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European markets move off daily highs
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DE30 pulls back from fresh all-time high
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ElringKlinger jumped following news on new, large contract
Stock markets in Europe trade higher on Tuesday. However, indices erased part of the gains and moved off daily highs. DE30 reached a fresh all-time high in the 15,537 pts area but has pulled back almost 100 points since. Stocks from Russia, Portugal and Poland are European top performers today while blue chips index from Belgium is the only one to trade lower on the day.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 reached a fresh intraday all-time high this morning at 15,537 pts. However, the index began to erase gains later. As a result, today's daily candlestick is starting to look like a pin bar, a pattern that often heralds reversal. Moreover, the index trades at an important resistance zone - 15,440 pts area is marked with the 127.2% retracement of the 2020 pandemic drop and has limited recent upward moves. Having said that, bulls should stay on guard should DE30 finish today's trading at current levels or lower as pin bar patterns painted at important price zones are usually seen as more credible. Key support to watch can be found in the 14,800 pts area.
Company News
According to a Reuters report, chemical giant BASF (BAS.DE) will enter a partnership with German utility company RWE (RWE) on climate. Partnership will allow BASF to achieve its climate neutrality goals. Details of the partnership are expected to be presented during a joint press conference of BASF and RWE on Friday, May 21.
Siemens (SIE.DE) will acquire Supplyframe, US platform for global electronics value chain that groups up over 10 million engineering professionals globally. Deal value is reported at $700 million. German company said that the acquisition will result in synergies in mid-triple digit millions.
ElringKlinger (ZIL2.DE) trades higher today after its subsidiary received a large order for fuel cell stacks from AE Driven Solutions. The Contract includes exclusive, multi-year supply of fuel cell stacks, starting from 2022, and is projected to result in total order volume measured in "high double-digit million euro".
ElringKlinger (ZIL2.DE) is rallying today. Stock tested the resistance zone ranging above the €15 handle but failed to break above it. A point to note is that this resistance zone also marks the neckline of an inverse head and shoulders pattern. Should the stock resume upward move and break above this zone, price may look towards the fresh post-pandemic highs. Source: xStation5
