DE30 tests midpoint of trading range

• European markets trade slightly higher

• DE30 tests 50-hour moving average marking midpoint of trading range

• Deutsche Post published preliminary 2020 results

Stock markets in Europe are trading slightly higher on Wednesday. There are no major economic releases scheduled for the European morning and speech from ECB President Lagarde failed to move the markets. Central banker repeated that the ECB is ready to act further if the economy requires it.  

Source: xStation5

DE30 halted yesterday's decline at 200-hour moving average (orange circle) and has managed to recover above the price zone at 13,875 pts. However, subsequent upward move has been limit by the 50-hour moving average (green line) and index began to swing in the vicinity of 38.2% retracement of recent correction (13,920 pts area). A break above this zone could hint at a continuation of the upward move in a short-term and test of the near-term resistance ranging between 13,980 pts and 61.8% retracement (14,000 pts). A sequence of higher lows can be spotted on the chart hinting that bulls remain in advantage. Should the market move lower, a break below 200-hour moving average could be seen as a warning signal.

Company News

Deutsche Post (DPW.DE) released preliminary results for full-2020. Company said that its revenue reached €66.8 billion, marking a 5% increase from 2019. EBIT at around €4.8 billion marks an over 16% increase from 2019. Results in "Post & Parcel Delivery" and "Express" divisions improved the most while the "Supply Chain" unit saw its operating income decline by more than half. Deutsche Post said that it expects full-2021 EBIT to be higher than full-2020 and forecasts profit to increase further in 2022.

Shares of ProSiebenSat (PSM.DE) trade under pressure today. Declines came after Bloomberg reported that KKR wants to sell 11 million shares of ProSiebenSat, or 4.7% of capital, at a price of at least €13.42 per share.

Share price of Deutsche Post (DPW.DE) makes a big jump today. Stock has broken above the upper limit of the ascending triangle pattern and trades above the highest daily close. However, intraday all-time high can be found around 1.5% above current market price at €43.41. Stock has made a couple of false breaks above the resistance zone at €41.70 over the past few months but this time there is solid news supporting the rally. Source: xStation5