Siemens rebound faces significant hurdle near 89E
Nicolas Suiffet May 8, 2020 4:24 AM
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. Industrial business profit and EPS were ahead of consensus.
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
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.