DE30 tests resistance zone near 15,800 pts

• European markets trade slightly higher

• DE30 tests resistance zone ranging below 15,800 pts

• Daimler lowers stake in Chinese EV joint venture

Majority of the European blue chips indices trade higher following the Christmas weekend. However, scale of moves is rather small and in most cases does not exceed 0.5%. Russian equities outperform with RTS (RUS50) gaining 0.9%. Polish WIG20 (W20) lags, dropping 0.4%. Traders from the UK are off for holidays today with London markets shut down.

Source: xStation5

DE30 launched a new week lower but a strong upward move at the start of the European cash session pushed the index to the highest level since mid-December. German index is testing the resistance zone ranging between 15,800 pts and the 61.8% retracement of the downward move started in November. This zone limited upward move three times during the past three week and a break above could be a strong bullish signal. As liquidity conditions are expected to be thinner into year's end, prices may be prone to more volatile moves. Calendar for the week is empty so traders should focus on newsflow. Failure to break above 15,800 pts could see the index pull back towards 50% retracement in the 15,600 pts area.

Company News

Daimler (DAI.DE) announced on Friday that it will decrease its stake in Chinese EV company Denza to 10%. The Chinese partner to Daimler - BYD Auto Industry - will increase its stake to 90%. Equity transfer is expected to be complete in mid-2022. Denza was a joint venture of Daimler and BYD.

Linde (LIN.DE) signed an agreement with Russian Gazprom to expand an LNG processing plant in Ust-Luga, a Russian Baltic port. Linde will build an additional line at the plant. Plant is expected to begin operations in 2024-2025.

Shares of Daimler (DAI.DE) managed to snap a losing streak near the €68 support zone last week. Stock managed to recover slightly but struggled with breaking above the €70 area. Should the downward move resume and share price break below the €68 support, attention may shift to the €58.30 area, marked with the lower limit of the Overbalance structure. Source: xStation5