Allianz and AXA are in an attractive overall technical situation – Commerzbank

British Stoxx 50 stock National Grid is seen as a technical switch candidate that accurately reflects this situation. In contrast, Euro Stoxx 50 insurance stocks Allianz and AXA are technical additional buys, economists at Commerzbank appraise.

Key quotes

“In the stock of insurance group Allianz, the overall technical situation suggests a continuation of the bull market movement. The medium-term technical price potential is to test the resistance zone from €230.0 to €235.0 (the pre-Corona price level). As Allianz additionally offers an attractive gross dividend yield of 4.6%, the stock remains a technical (additional) buy.”

“The medium-term uptrend should continue, and it should be no surprise if the stock can again advance to or into the staggered resistance zone (€25.5 to €27.5). Moreover, AXA currently offers an attractive dividend yield of more than 6%. Due to this overall situation, AXA remains a conservative technical (additional) buy.”

“Utility company National Grid is now in a bear market movement. In the last trading days, however, the stock has slipped through the GBp 827 support with another technical sell signal, and so the bear market trend continues. Although National Grid – like many European utility companies – currently offers a gross dividend yield above the market average, the overall situation makes this stock a technical switch or sell.”