Market Analysis

Lufthansa expansion plans – investors not convinced

Deutsch Lufthansa AG (commonly known as Lufthansa) is Europe’s most reliable airline in terms of revenue. At yesterday’s Annual General Meeting, the group reported on its future expansion plans. Lufthansa plans to take over the holiday airline Condor.

Investors greeted this news with little euphoria, because the proposed takeover will not be simple. It will certainly take some effort to integrate the new acquisition into the existing group. In the short-haul segment, there are likely to be some overlaps with Lufthansa’s previous routes.

Reacting to this news, the share came under downward pressure yesterday.

From a chart technical point of view, the area around €20.15 could become interesting for the next few days. This area could decide whether the bulls recapture the market or leave the field to the bears.

If the market breaks down through this area, the next support could be in the €19.20 range. Another structural level that could support the market is in the €17.60 range. If the market breaks through here too and the bears do not hold back, then the picture could cloud over, and another important structural level at €14.30 could then support the market.

However, if after yesterday’s general meeting the bulls take over again then, after overcoming the old intermediate highs around €21.70, the next resistance could be in the zone between €22.40 and €22.80. If the stock can continue its upward trend after that, a further resistance level could be in the area at €24.10. If the bulls are ready to carry the market higher, it could finally reach another resistance band between €25.70 and 26.10.

The MACD oscillator has formed a bearish cross between the MACD line and the trigger line. The histogram is in negative territory.


LHA.GE - daily chart. Source: ActivTrader

LHA.GE Daily Chart | Source: ActivTrader


Written by Daniel Schuetz, External Analyst, ActivTrades

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