The DAX index is up mildly today as focus remains on corporate earnings. It is up by 0.40% while its closest peers are in the red. The FTSE 100 and CAC 40 are down by 0.90% and 0.18%, respectively.
Siemens is the biggest driver of the DAX index today. The company, which is also the biggest engineering firm in Europe, released results that were better than what analysts were expecting. Its net profit fell to 539 million euros from 1.03 billion euros in the previous year. This loss was mostly because of the company’s Gamesa Renewable Energy busines and higher taxes.
In total, the company had a revenue of 13.49 billion euros, which was lower than the 14.24 billion in the same period in 2019. Still, this was better than the 12 billion euros that analysts were expecting. Also, the company’s software business helped to cushion its loss. Its EBITDA rose to $2.1 billion, in part because of a one-time re-evaluation of The Bentley, a software company.
Deutsche Post is also a top mover in the DAX index today. The shares are up by more than 3% after the company’s pretax profit increased by 18.6% to 912 million euros. That was higher than the 769 million euros the company reported a year earlier.
Other top movers in the DAX index today are Adidas, Volkswagen, Infineon, and Bayer, which are all up by more than 1%. On the other hand, the top laggards in the index are Beierdorf, Henkel, and Muench Rueckvers that are all down by more than 1%.
DAX Index technical outlook
A look at the daily chart shows that DAX index has been on a strong upward trend after bottoming at 7,973 euros in March. The index reached a high of 13,306 euros in July this year. This week, the index has moved relatively sideways after having its best day since July on Friday.
The index formed a small bullish pennant pattern and is now at the highest level since Thursday last week. It is also above the 50-day and 100-day exponential moving averages. Most importantly, the index is above the ascending trend line that is shown in blue. Therefore, I suspect that the upward trend will continue as bulls aim for the next resistance at 13,000.
On the flip side, a move below 12,188 will invalidate this trend. This price is important because it is the lowest swing on July 31st.
Don’t miss a beat! Follow us on Telegram and Twitter.
DAX Index forecast
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Crispus on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.