Current trend

The leading index of the Frankfurt Stock Exchange, the DAX 40, is adjusting at 18348.0 amid a continuing decline in the domestic bond market.

The financial reports of Schlumberger NV and Sartorius AG are scheduled to be published today. According to forecasts, the quarterly revenue of the Norwegian concern Schlumberger NV may amount to 8.46 billion euros, which will exceed both 8.16 billion euros in the previous quarter and 7.29 billion euros over the same period a year earlier, and earnings per share (EPS) will reach 0.77 euros, also above 0.64 euros a year earlier. Sartorius AG's revenue forecasts suggest an increase to 843.78 million euros from 819.6 million euros in the previous quarter, while EPS could reach 0.987 euros, down from 1.01 euros a quarter earlier and 1.39 euros over the same period a year earlier.

The domestic bond market has been declining for almost a month now: today, the most popular 10-year German bonds are trading at a rate of 2.414%, lower than last week's figure of 2.487%, global 20-year bonds at a rate of 2.633%, below 2.700% a week earlier, and global 30–year bonds can bring 2.613% of income, lower than last Friday's figure of 2.657%.

Among the growth leaders are Commerzbank AG ( 2.88%), Daimler Truck Holding AG ( 2.56%), Continental AG ( 1.93%), Rheinmetall AG ( 1.92%).

Among the companies showing downward dynamics are: Siemens AG Class N (˗4.42%), Siemens Energy AG (˗2.32%) and SAP SE (˗1.46%).

Support and resistance

On the D1 chart, the asset is correcting again, approaching the support line of the "head and shoulders" pattern at 18200.0.

Technical indicators are reversing and preparing to issue a new sell signal: the fast EMAs on the Alligator indicator are still above the signal line, and AO histogram, being in the purchase zone, forms descending bars.

Support levels: 18220.0, 17740.0.

Resistance levels: 18480.0, 18910.0.

Trading tips

In the event of a reversal and decline of the asset and price consolidation below the support level of 18220.0, short positions can be opened with the target of 17740.0 and stop-loss of 18400.0. Implementation period: 7 days and more.

In case of continued local growth of the asset, as well as price consolidation above the resistance level of 18480.0, one may open long positions with the target of 18910.0 and stop-loss of 18200.0.