“New all-time high is increasingly likely”


Dax curve in the trading room in Frankfurt

The development of the coronavirus pandemic also remains in the focus of investors.

(Photo: dpa)

Düsseldorf Weak start to the week on the German stock market: The Dax loses 0.6 percent in the first hour of trading and is trading at 13,261 points.

Last Friday, the German stock market barometer ended trading with a plus of 0.4 percent and a final reading of 13,336 points, the highest closing price in the past three months. Since the share barometer went out of trading on Friday almost at its weekly high, the chances for further follow-up profits are favorable from a technical point of view.

If investor sentiment has its way, today’s correction should also quickly fizzle out. According to the Handelsblatt survey Dax Sentiment, investors are still dominated by a high level of optimism for the future and a high willingness to invest. Euphoria, the classic counter-indicator in sentiment analyzes, is also not yet in sight.

Although there are increasing signs of a correction in the USA, the motto currently (still) applies in this country: Investors regard every setback as a buying opportunity, which should end a correction quickly and make a sell-off appear unlikely.

The goals for the optimists in the stock market are clear: First, the 13,460 mark has to be overcome. This is where the corona high lies, the highest level since the crash in mid-March, when the Dax slipped to 8255 points. The record high of 13,795 meters from February 2020 comes into focus. “All in all, a new all-time high above the 13,795 mark is increasingly likely,” said the technical analysts at the British bank HSBC in their morning commentary.

Chip values ​​are the focus of today’s trade. Because the consolidation in the industry continues: The Munich chip supplier Siltronic is about to sell to Taiwan. The company is apparently on the verge of reaching an agreement with rival Globalwafers, which wants to offer a total of 3.75 billion euros for the MDax company.

The Siltronic Executive Board considers the purchase price to be “attractive and reasonable”. The Taiwanese almost certainly have 30.8 percent of Siltronic. Major shareholder Wacker Chemie is about to reach an agreement with GlobalWafers to offer its block of shares at the price offered.

GlobalWafers is offering 125 euros per share, eleven percent more than the Friday closing price. The share rises accordingly to xxxxx

Last week, the Siltronic share price shot up 14 percent. The plus in the past three months was around 45 percent at the end of last Friday. Siltronics customers are to a large extent automotive suppliers who take care of the on-board electronics.

But the price development of the other German chip stocks is also impressive. The quotations of Infineon and the British-Swabian concern Dialog Semiconductor rose in the past three months by more than 25 percent.

In complete contrast, the prices of US chip stocks such as Intel, Nvidia and Advanced Micro Devices fell slightly in the past three months. However, these values ​​had previously experienced a real bull market. Since the beginning of the year, the Nvidia share has risen by more than 125 percent.

Look at the individual values

What: Selling new shares puts a strain on the share. The title of the forklift manufacturer fell by three percent to around 67 euros. The company has set the subscription price for the new papers at 62 euros each.

Corestate: After the extensive exit of several major shareholders and a reorganization of the supervisory board, Corestate’s shares are going downhill. The real estate company’s papers fall 6.8 percent. However, they are still more than percent above the level at the end of October.

BVB: After the 1: 2 defeat against 1. FC Köln, the shares of Borussia Dortmund (BVB) slip into the table cellar of the SDax. The title of the Bundesliga club lost 3.4 percent.

FC Schalke 04: In contrast to BVB, the football club is not listed on the stock exchange, but has issued a bond with a term until 2023. The corona pandemic has caused the risk and thus the yield of the Schalke bond to rise significantly. At the beginning of the year the price was 110 cents, the yield corresponding to 1.5 percent. Die-hard Schalke fans can currently achieve a return of 15.4 percent with the bond. Of course, only if the club does not have to file for bankruptcy, which is by no means excluded in view of the sporting downturn and the lack of spectators due to the corona pandemic.

Look at other asset classes

After several days of profit-taking, investors are getting back into Bitcoin. The oldest and most important cyber currency has risen by ten percent to just under $ 18,700 and is now only seven percent below its previous record high of just under $ 20,000. “Fresh money from investors who have so far missed the Bitcoin rally is now flowing into the market,” says analyst Timo Emden from Emden Research.

What the chart technique says

The Dax reached a new high of 13,347 points last Wednesday, but was unable to maintain this level. For another buy signal, the index would have to overcome the previous corona high of 13,460 points from September. This is the highest price since the Corona crash in mid-March, when the Dax slipped to 8255 points.

On the downside, the lows on November 19 and 13 at 13,035 and 13,005 are the limits. Slipping below these brands should lead to a breather.

For strategic investors, there is an upward gap from the beginning of the month as a stop-loss mark. Such gaps arise when the highest level on one trading day is below the lowest level on the following day.

Specifically: The highest level on Friday (November 6th) was 12,596 points, the lowest price on Monday (November 9th) was 12,671 points. As long as the Dax remains above 12,671 points, from a technical point of view there is no doubt about the current upward movement since the end of October, when the Dax stood at 11,450 points.

Here you go to the page with the Dax course, here you can find the current tops & flops in the Dax.

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