The airline, Lufthansa, is today’s biggest loser in the DAX index as it was down 7.57% on the day at the time of writing. Some 8.73 million Lufthansa shares had changed hands, compared to the 5.56 million in the second most traded share: Deutsche Bank AG.
The main reason for the slide in Lufthansa is the spike in crude oil prices following the news that the US killed General Qassem Soleimani, the head of Iran’s Quds Force, and Abu Mahdi al-Muhandis, the deputy commander of Iran-backed militias in Iraq.
Brent Crude oil prices more or less reached the same levels seen following the drone attack on Saudi Crude oil production facilities in September 2019. The US has long said it was Iran that was behind the attack in Saudi Arabia. With crude oil prices trading at elevated levels and at risk of trading higher Lufthansa’s share price has crumbled. The move lower in Lufthansa’s share price was mirrored in Air France’s, which was down by 7.53% on the day at the time of writing.
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The overall trend in Lufthansa’s share price remains bearish since December 2017, and today’s bearish price action is firmly suggesting that the direction lower could continue, and this could weigh on the DAX index. The trend in Lufthansa’s share price will remain bearish below the November 11 high of €17.95, and the next support level is the October 31 low of 15.34, followed by the September 26 low of 13.68.
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