Daily Analysis DAX40 - 20 July 2023

European stocks are set to open on a subdued note on Thursday as traders sift through a mixed bag of earnings reports. The focus will be on the Frankfurt-listed shares of prominent U.S. companies, Netflix and Tesla, which have experienced declines of 3.7% and 8.3%, respectively, following their latest quarterly earnings announcements.

Tesla's CEO, Elon Musk, hinted at potential price cuts, which had a negative impact on the company's shares. On the other hand, Netflix reported impressive results, adding 5.9 million new streaming customers between April and June, and surpassing earnings expectations. However, traders remain concerned about the company's revenue and a weaker-than-anticipated Q3 revenue forecast.

Additionally, European investors will closely monitor the semiconductor sector at the market's opening, particularly after Dutch semiconductor equipment manufacturer ASML reported better-than-expected second-quarter earnings on Wednesday and raised its full-year sales outlook.

Overall, the market sentiment is cautious due to the mixed earnings reports, and all eyes are on the performance of these key companies as the trading day begins.

The DAX came back toward the 16,200 level. In the short term, the DAX remains bullish due to the prevailing risk-on sentiment in the markets, Q2 earnings started positive and better than expected which may help the DAX reach the last high at 16400.

Resi Level 3	Resi Level 2	Resi Level 1	Suppo level 1	Suppo level 2	Suppo level 3
16800	16600	16370	15650	15400	15200