Current flow

The main index of the Frankfurt Stock Exchange DAX 40 corrected at the level of 18975.0, responding to the publication of corporate reports of component companies.

Yesterday, the financial and insurance services provider Allianz SE's quarterly results were presented, reflecting revenues of 42.80 billion euros against forecasts of 42.41 billion euros, and earnings per share (EPS) amounting to 6.54 euros, while analysts expected 6.18 euros. Today, electrical engineering concern Siemens AG will publish its report, which according to preliminary estimates, may record a revenue of 20.44 billion euros after 18.90 billion euros in the previous period, and earnings per share may increase to 2.41 euros from 2.15 euros. On the other hand, the revenue of the leading German telecommunications operator Deutsche Telekom AG could amount to 28.37 billion euros, exceeding the 27.56 billion euros shown last year, and EPS could be 0.4809 euros after 0.4600 euros.

Yields on leading German bonds rose for the second consecutive month: the rate on the 10-year debt security rose to 2.385% from 2.322% last week, on the 20-year bond to 2.598% from 2.559%, and on the 30-year bond to 2.584% , below the 2.691% maximum from November 7.

The growth leaders in the index are Siemens Energy AG ( 18.95%), RWE AG ( 6.14%), Brenntag AG ( 2.27%), Siemens AG ( 0.82%).

Among the decliners were Porsche Automobil Holding SE (˗6.17%), Infineon Technologies AG (˗4.70%), Bayer AG (˗3.50%).

Support and resistance

On the D1 chart, the instrument is trading in a corrective trend, gradually moving away from the "neck" line of the "head and shoulders" reversal pattern, located at the 19000.0 level.

Technical indicators have successfully changed the signal to the downside: the fast EMA on the Alligator indicator is again moving away from the signal line, and the AO histogram is in the sell zone, continuing to form a correction bar.

Support levels: 18830.0, 18200.0.

Resistance levels: 19070.0, 19650.0.

Trading tips

If the decline continues and the price consolidates below the support level of 18830.0, a sell position with a target at the level of 18200.0 will be relevant. Stop loss — 19200.0. Implementation period: 7 days and more.

If the growth continues and the price consolidates above the resistance level of 19070.0, a buy position with a target at the level of 19650.0 can be opened. Stop loss — 18800.0.