Current trend

The leading index of the Frankfurt Stock Exchange DAX 40 is trading at 18277.0 amid positive macroeconomic statistics and the start of the corporate reporting season. The German Manufacturing PMI rose to 42.2 points in April from 41.9 points earlier, and the Services PMI — to 53.3 points from 50.1 points. Against this background, the Composite PMI rose to 50.5 points from 47.7 points.

Heineken NV Brewing Corporation's financial results will be published today: analysts expect revenue to increase to 6.91 billion euros from 6.38 billion euros a year earlier, and earnings per share (EPS) will rise to 2.70 euros from 2.11 euros.

Despite the positive statistics, the bond market shows an uptrend: 10-year securities are trading at 2.507%, up from 2.473% recorded last week, and the yield of 20-year bonds is 2.681%, exceeding 2.659% shown a week earlier.

The growth leaders in the index are Infineon Technologies AG ( 3.76%), Sartorius AG ( 6.77%), SAP SE ( 5.27%), Merck KGaA ( 4.03%).

Among the leaders of the decline are Henkel AG & Co. (-2.65%), Symrise AG (-0.74%), RWE AG (-0.44%).

Support and resistance

On the D1 chart, the price is trading in an uptrend, again approaching the resistance line of the channel of 19000.0–17500.0.

Technical indicators are unfolding and are ready to issue a new buy signal: the fast EMAs on the Alligator indicator almost crossed the signal line from the bottom up, and the AO histogram, being in the sales zone, continues to form ascending bars.

Support levels: 18100.0, 17760.0.

Resistance levels: 18370.0, 18650.0.

Trading tips

In case of continued growth of the asset, as well as price consolidation above the resistance level of 18370.0, buy positions with the target of 18650.0 may be opened. Stop-loss – 18250.0. Implementation time: 7 days and more.

In the event of a reversal and decline of the asset, as well as price consolidation below the support level of 18100.0, sell positions with the target of 17760.0 can be opened. Stop-loss – 18300.0.