Düsseldorf A strong start with a weak continuation: This is how trading on the German stock market can be described on Thursday. The Dax closed 0.1 percent in the red at 13,907 points after briefly making the jump over the 14,000 mark in the morning.
The trading day was completely different for the two smaller Dax brothers, MDax and SDax. As on the previous day, they achieved new records. The two indices in the second row of exchanges rose to highs of 31,905 and 15,714 points, respectively.
For the Dax, the next goals are clearly outlined: Prices above 14,030 points, the latest interim high of the current correction, would probably drive the index towards 14,132 points, the previous record high. The current daily high of 14,029 points underscores the importance of the short-term resistance in the form of 14,030 points.
A new Dax record high is possible in the coming trading days, but the chances of further price increases are initially limited. For example, according to the analysis of the investor survey conducted by the Frankfurt Stock Exchange, behavioral economist Joachim Goldberg expects profit-taking in the range of 14,150 to 14,200 points at the latest. “The lid is on the Dax,” he says.
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To understand this forecast, a look back at the past trading days helps. For investment professionals, the 13,720 point mark was and still is the linchpin in the perception of gains and losses. It is the closing level of the previous year and the starting level of institutional investors for the new stock market year.
The professionals used the price slide last Friday to 13,672 meters to buy again or to close out their hedges against falling prices. Accordingly, the sentiment indicator of the Frankfurt Stock Exchange turned positive because the expectations of the investment professionals were met and they were able to buy at favorable prices. They are no longer under pressure to invest in the market again, but rather they will try to take profits.
This will align the mood among private investors and professionals. Sentiment expert Stephan Heibel already criticized after evaluating the Handelsblatt survey Dax Sentiment on Monday of this week that there was no willingness to buy that could drive the Dax significantly higher.
Because the professionals used the price slide last Friday and on the Monday of these weeks to around 13,700 points for shopping, the threshold for further investments falls accordingly. According to Goldberg’s estimate, this is more in the range of 13,450 to 13,500 meters.
In addition, the international fund managers are already overweighted in stocks in the euro zone. This means that demand from abroad remains limited.
Automotive values in demand
In the Dax stocks, the auto stocks were very popular with investors. Volkswagen– and Daimler-Akien are among the DAX winners with a plus of 2.8 percent and two percent. The European auto sector index climbed to its highest level in fourteen months. The papers of the delivery service keep the Dax winners list Delivery Hero with a premium of 3.6 percent.
Zooplus even shone with a plus of 10.4 percent. The titles of the online pet supplies retailer are more sought after by investors in view of the extended corona restrictions, as they are seen as benefiting from the stay-at-home trend.
Record hunt for the share Shop pharmacy continues
Shop pharmacy: The share price hits a new record high for the third day in a row. The new high is 192.20 euros, an increase of almost five percent compared to the previous day. In the past twelve months, the price of the online pharmacy rose by a total of 320 percent. The next mood driver for the success-spoiled shareholders was the strong figures of the competitor Zur Rose, whose shares in Zurich also rose by five percent.
The German-Dutch company has a market capitalization of 3.3 billion euros. A proud figure considering the company does not disclose any profit. The full annual report for 2020 is to be published on March 3rd.
Thyssen-Krupp: The industrial group has suspended the sales process for its cement plant construction subsidiary. As the Ruhr group announced to its employees in a circular last week, several companies had submitted an offer for the business after carrying out the mutual audit. “We were not convinced by the offers available to us,” says the letter that the Handelsblatt has received.
Apparently, investors are pleased with the news. The share price rose 1.6 percent. The paper is already in a brilliant upward trend, the price has more than doubled in the past three months.
Aurubis: Thanks to robust demand, the copper smelter is now aiming for an operating profit of 27 to 330 instead of 210 to 270 million euros for the year as a whole. AurubisShares subsequently rose to a two-and-a-half-year high of EUR 70.36 and closed 5.8 percent up at EUR 69.98.
US President Biden is considered a burden on Bitcoin
Fears of stricter regulation under the new US President Joe Biden pushed the Bitcoin price down on Thursday. The cryptocurrency fell eleven percent to just over $ 31,000. The cyber currency has lost almost a quarter since its record high of $ 42,000 in early January.
During a Senate hearing on Tuesday, Janet Yellen, who will head the U.S. Treasury Department under Biden, voiced concerns that cryptocurrencies could be used to fund illegal activities.
Joseph Edwards of crypto broker Enigma Securities said the statements had led to increased outflows. But it is still unclear what steps the Biden government would take – if at all. “We think, however, that it’s probably still just a momentary weakness and not a fundamental trend reversal,” said Edwards.
In addition, many investors are currently increasingly shifting their assets into alternative currencies, especially ether. This is proven by the ratio between Ethereum and Bitcoin, which has risen by over ten percent on a weekly basis.
What the Dax chart technology says
The focus is on the 13,500 point mark on the bottom. Medium-term investors can move their stop-loss mark in this area, depending on their strategy and risk tolerance. Prices below 13,672 points, the correction low since the record high, would be the first indication of a slide towards 13,500 points.
What’s the next goal on the top? For the bank’s technical analysts HSBC the mark of 14,228 points serves as the next point of contact, which is no longer far removed from the current record high of 14,132 points. From a technical chart point of view, a target price of 14,700 meters can be derived in the coming days and weeks.
Here is the page with the Dax course, here are the current tops & flops in the Dax.