Current trend

Frankfurt Stock Exchange's leading index DAX 40 is correcting at 19067.0 after the publication of corporate reports.

Yesterday, chemical company Linde Plc. reported its quarterly revenue of 7.70 billion euros, compared with a forecast of 7.69 billion euros, and its earnings per share (EPS) of 3.63 euros, compared with analysts' expectations of 3.56 euros. In turn, oil and gas company Shell Plc. reported revenue of 65.48 billion euros after 71.9 billion euros shown a year earlier, with 62.01 billion euros expected.

Retail Sales in Germany increased by 1.2% in September, the same as the month before, bringing the annual figure to 3.8% from 2.5%, while experts had expected 1.6%.

Amid yet another round of monetary easing by the European Central Bank (ECB), yields on leading bonds are rising: the 10-year bond yield rose to 2.392% from 2.297%, and the 20-year bons yield rose to 2.626% from 2.602%, while the 30-year bond yield fell to 2.599%, below the 29 October high of 2.621%.

The growth leaders in the index are Fresenius SE ( 0.81%), Deutsche Bank AG ( 0.77%), Sartorius AG ( 0.76%), Merck KGaA ( 0.56%).

Among the leaders of the decline are Zalando SE (–3.81%), Rheinmetall AG (–2.57%), Infineon Technologies AG (–2.36%).

Support and resistance

On the daily chart, the price is trading in a corrective trend, declining and gradually moving away from the support line of the ascending channel with dynamic boundaries of 19700.0–19200.0.

Technical indicators have not changed the signal yet, but have started to actively slow it down: fast EMAs on the Alligator indicator are approaching the signal line, and the AO histogram, being in the buy zone, is still forming corrective bars.

Support levels: 18940.0, 18210.0.

Resistance levels: 19210.0, 19670.0.

Trading tips

If the asset continues declining and the price consolidates below 18940.0, short positions can be opened with the target at 18210.0. Stop-loss — 19200.0. Implementation time: 7 days and more.

If the asset continues to grow, as well as the price consolidates above the resistance level of 19210.0, long positions with a target of 19670.0 will be relevant. Stop-loss — 19000.0.