Wed. Oct 27th, 2021

Thursday’s session was a session in which many companies presented their second-quarter quarterly results. The company’s results include Intel, Twitter and AT&T.

A few days ago, we commented that Intel might be interested in acquiring GlobalFoundries, as some rumors and media pointed out, and that quarterly results could drive that action. Specifically, Intel announced positive results yesterday in which earnings per share reached $ 1.22 along with revenue of $ 18.53 million compared to $ 1.07 per share in revenue of $ 17.8 billion expected by market consensus.

Twitter also posted positive quarterly results after $ 0.20 per share earnings and $ 1.19 billion in revenue compared to $ 0.072 per share and projected revenue of $ 1.06 billion. These results are being well received by the market, as at this time during the pre-opening the price rises more than 5%.

For its part, the telecommunications giant AT&T also showed positive results this would attract the attention of investors, after signing its agreement with Discovery for the merger of this with WarnerMedia. In these results, we can see that thanks to HBO Max and its broadcast services, in addition to the 2.8 million subscribers that WarnerMedia obtained, the company obtained 798,000 new telephone subscribers that far exceed market estimates.

Specifically, AT&T, earnings per share of $ 0.89 and revenue of $ 44.05 billion compared to $ 0.79 per share and projected revenue of $ 42.660 billion.

On the other hand, during the beginning of today’s session, we learned about the preliminary PMI data for the services and manufacturing sector in France, Germany, the United Kingdom and for the euro area as a whole. Although Germany and the eurozone have exceeded market expectations, the United Kingdom and France have performed worse than expected.

Source: Admiral Markets Forex Calendar

How is this data interpreted?

We must remember that the Manufacturing PMI is an indicator designed to provide information on the economic activity of the manufacturing sector where a score above 50 indicates the expansion and growth of this industry.

For its part, the The PMI of the services sector measures the economic activity by means of the purchases realized in this one sector. As in the manufacturing PMI, a reading above 50 is considered positive, suggesting good future prospects, while a reading below 50 is considered negative.

These positive results for Germany can give a boost to the DAX30, as if we look at the daily chart, we can see that after bouncing to the important support area coinciding with the lower side of the side channel and the uptrend line represented by the red circle, the price has gained a new upward momentum that has led it to surpass its 18 and 40 session high moving averages.

Source: Admiral Markets MetaTrader 5. Dax30 Daily Chart Data Range: March 23, 2020 to July 23, 2021. Prepared July 23, 2021 at 10:50 am CEST. Please note that previous returns do not guarantee future returns.

Evolution in the last 5 years:

  • 2020: 3.6%
  • 2019: 25.48%
  • 2018: -18.26%
  • 2017: 12.51%
  • 2016: 6.87%

In the H4 chart, we can see that the area of ​​its 18-session moving average (white) in the daily chart corresponds to its moving average of 200 to H4 (red) and that the price has strongly exceeded this important resistance level after to bounce to the support indicated above.

If we look at the stochastic indicator in this time period, we can see that it is currently at overbought levels, so it is not ruled out that the price may regain its current support at the 200-day moving average in H4 (which corresponds to its 18-session moving average on the daily chart).

In this case, it would be important to study the behavior of the price at this level, because if it manages to maintain it, we could find an upward momentum in the area of ​​the side channel above the green strip.

As long as the price does not lose its main level of support on the daily chart represented by the red circle, the sentiment will remain bullish. The loss of this level would open the door to new corrections.

Source: Admiral Markets MetaTrader 5. Graph H4 of the DAX30 data range: May 6, 2021 to July 23, 2021. Prepared July 23, 2021 at 10:55 AM CEST. Please note that previous returns do not guarantee future returns.

With the Admirals Trade.MT5 account, you can exchange contracts for differences (CFDs) on DAX30, Twitter, Intel, AT&T and more than 3,000 shares. CFDs allow traders to try to benefit from the bullish and bearish markets as well as the use of leverage. Click on the following banner to open an account today:

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