The DAX Index remained in a tight range this month, remaining between the key support and resistance levels at €23,363 and €24,650. It reacted to earnings of key companies like BMW, Siemens Healthineers, Commerzbank, and Heidelberg Materials. This article looks at some of the top companies to watch next week.
Bayer
Bayer, a top player in human and animal health, will be one of the top companies in the DAX Index to watch next week as it publishes its financial results.
The results come as the company’s momentum experienced earlier this year fades. This momentum faded after it published its financial results, which showed that its crop science revenue dropped by 1.2% in the year’s first half.
Bayer’s pharmaceutical revenue rose by 2.3%, while its consumer health rose by 1.4%. Therefore, the upcoming results will provide more color on whether its business is doing well.
Still, there is a likelihood that the Bayer share price will drop after it earnings as it has formed a double-top pattern at 29.68 euros. It has also moved below the 50-day and 100-day moving averages, a sign that bears remain in control.
Siemens
Siemens is one of the biggest companies in the DAX Index. It is an industrial giant that makes products in industrial automation, energy and smart infrastructure, mobility and transportation, and software solutions. Its solutions are widely used in the manufacturing industry.
Siemens stock will be in the spotlight as it publishes its financial results, which will provide more color on its business. Its recent third-quarter numbers showed that its orders jumped by 25% to 24.7 billion euros, while its revenue rose by 3% to 19.4 billion euros. Additionally, the company’s net income rose to 2.2 billion euros, while its free cash flow rose.
Siemens share price has moved sideways in the past few days. It was trading at 241 euros, a few points above the year-to-date high of €252. It has jumped by almost 50% from its lowest level this year.
Deutsche Telekom
The other important DAX Index stock to watch will be Deutsche Telekom, the biggest shareholder in T-Mobile. Its stock has crashed to €26, down sharply from the year-to-date high of €35.
The stock has already formed a death cross pattern and technicals points to more downside. This crash accelerated after its second-quarter revenue came in at €28.7 billion, which was lower than expectations.
Therefore, the upcoming results will provide the company with an opportunity to reset and possibly boost investor confidence.
The other top companies to watch in the DAX Index are firms like Deutsche Post, Merck, Allianz, RWE, E.ON, Infineon, and MunichRe.
Allianz, Munich Re, and Hannover Rueck are the biggest insurance companies in the country.
DAX Index technical analysis
The daily timeframe chart shows that the DAX Index remained in a tight range in the past few months. It has remained inside the key support at €3,363 and the resistance at €24,650.
On the positive side, the stock has formed an inverse head-and-shoulder pattern. This means that it may bounce back, and possibly retest the key resistance level at €25,000. However, a move below the support at €23,363 will invalidate the bullish view.
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