Market News & Analysis

Top Story

Siemens rebound faces significant hurdle near 89E

Siemens, the industrial manufacturing group, announced that 2Q net income declined 64% on year to 697 million euros and adjusted Industrial business EBITA fell 18% to 1.59 billion euros on revenue of 14.23 billion euros, broadly flat (-1% on a comparable basis). 

Industrial business profit and EPS were ahead of consensus.

Regarding the outlook, the company stated: "We expect even stronger impacts from the pandemic on business development in our fiscal third quarter. Beyond the third quarter of fiscal 2020, macroeconomic developments and their influence on Siemens currently cannot be reliably assessed. Therefore, we can no longer confirm our original guidance for fiscal 2020. We now expect a moderate decline in comparable revenue in fiscal year 2020."

From a technical perspective, the stock price remains within a short term bullish trend, supported by the rising 20-day simple moving average (trailing stop). The daily Relative Strength Index (RSI, 14) is holding above its horizontal support at 50%. Prices face significant hurdle near 50% Fibonacci retracement level at 89E. 

A break above this resistance level would call for a new up move towards 61.8% Fibonacci retracement at 96E. 

Alternatively, a break below 80.2E would invalidate the short term bullish bias and would call for a down move towards 72E.

Source: GAIN Capital, TradingView

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.