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Mixed beginning to the European session
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DE30 attempts a break above short-term trading range
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Covestro (COV1.DE) trades higher on upbeat earnings report
Performance of the major European indices at the beginning of a new week can be named mixed. Stocks from the Western Europe decline but the German DAX (DE30) manages to stay above Friday’s closing price. Bulls dominate in the central and eastern part of the Old Continent with Russia and Swedish equities gaining the most.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 has been trading within a tight range at the beginning of Monday’s session. The index tested the upper limit of the range at 12907 pts, marked by the upper limit of the Overbalance structure, a couple of times already but failed to sustain momentum above. In case the ongoing attempt of breaking above fails, the index could pullback towards the lower limit of the aforementioned range at 12875 pts handle. However, in case the break higher is finally delivered, the next resistance may arise in the 12920-12960 pts area, to which a price reacted a few times in November and December 2017.
DAX members at 8:37 am BST. Source: Bloomberg
Covestro (COV1.DE) reported earnings for the third quarter of 2019 before session open today. The German chemical company managed to slightly beat EBITDA, EBIT and net income estimates while sales at €3.16 billion fell short of €3.17 billion consensus. In spite of this upbeat results, the company opened with a downward price gap at the beginning of a new week. Narrowing of full-year EBITDA estimates can be named as a reason as Covestro now expected EBITDA of €1.57-1.65 billion (€1.5-2 billion earlier). However, during the first hour of trade losses were recouped and the stock swung to gain.
Salzgitter (SZG.DE) can be found among best performing SDAX stocks on Monday morning. The company gains after Bankhaus Metzler raised the recommendation for the stock from “hold” to “buy”.
Covestro (COV1.DE) enjoys significant upward momentum today, thanks to the upbeat earnings report. The share price is testing the resistance zone ranging below the 50% Fibo level of the downward move started in mid-April. Source: xStation5
