DE30 tests resistance zone at 15,270 pts

• European stock markets trade higher on Thursday

• DE30 tests 61.8% retracement at 15,270 pts

• Deutsche Wohnen jumps on Constitutional Court ruling

European stock markets are trading higher on Thursday. Gains can be spotted across the Old Continent, in spite of mixed performance of US stocks yesterday and Asian equities today. Swedish, Belgian and UK stocks are top performers today while Russian, Polish and Portuguese blue-chips indices lag and trade below yesterday's closing prices. US retail sales data release at 1:30 pm BST is a key macro event of the day.

Source: xStation5

DE30 dipped below the upward trendline yesterday. Downward move was halted at the support zone ranging below 15,180 pts. Recovery move was launched later on and the index has recovered back above the aforementioned trendline and 50% retracement at 15,249 pts. An attempt of breaking above the 61.8% retracement at 15,270 pts can be spotted at press time. However, long upper wicks can be spotted on the M30 interval, hinting that resistance in the area remains strong. In case of a failure to break above it, a pullback towards the 50% retracement can be on the cards. On the other hand, if bulls manage to push DE30 above 15,270 pts zone, the next target to watch can be found at 15,300 pts (78.6% retracement).

Company News

Deutsche Wohnen (DWNI.DE) is the best performing DAX member today. Stock rallied following German Constitutional Court ruling that overturned a law imposing a 5-year rent freeze in Berlin. Ruling also removed restrictions that were forcing landlords to lower prices in the German capital. Another German landlord - Vonovia (VNA.DE) - is also trading among DAX leaders. However, gains for this stock are smaller as the company said it will not attempt to claw back €10 million in lost rents.

Draegerwerk (DRW3.DE) is trading higher following release of preliminary Q1 earnings yesterday after session close. Company said that its net sales were around €792.1 million, up from €640 million in Q1 2020. EBIT at around €129 million, drove EBIT margin increase to 16.3%. Preliminary data pointed to orders of around €739.8 million. Draegerwerk expects full-year EBIT margin at 5-8%. Full Q1 results will be published on April 29, 2021.

Deutsche Wohnen (DWNI.DE) began to rally yesterday when it was announced that the Constitutional Court ruling on the Berlin rent freeze will be announced today. Ruling turned out to be favourable for the company and the upward move was extended today. Shares traded around 7% higher at one point of the session and tested the resistance zone ranging below €46.90 mark (161.8% exterior retracement of the 2020 pandemic drop. However, part of the move has been erased since. Source: xStation5