Siemens AG stock price (ETR: SIE) surged over 4% on Thursday after the German giant posted better-than-expected results for its third quarter. Shares are now attempting to break a long-term resistance around the 115.00 mark.

Siemens saw its adjusted industrial profit jump to 1.79 billion euros, smashing analyst forecasts for 1.17 billion euros. The German engineering group was particularly pleased to see an increase of 211 million euros in the valuation of its stake in software firm Bentley Systems.

The German behemoth witnessed its revenues fall 5% to 13.49 billion euros, again higher than forecasts of 12.75 billion euros for the third quarter. Profit came in better-than-expected, despite falling revenues, due to accounting gains and savings.

Siemens committed to continue with the restructuring process as it seeks to spin off its gas turbine business into a new company called Siemens Energy. The plan assumes the current CEO Kaeser taking on the Siemens Energy CEO job after he leaves Siemens AG early next year. 

The firm previously dropped its full-year guidance amid the virus-fueled uncertainty. Three months ago, Siemens saw its second-quarter industrial profit drop 18% amid the factory and office shutdowns.

The outlook for the rest of the year remains unchanged as the engineering group expects the pandemic to “strongly impact” its business in the fourth-quarter. 

Siemens share price riled 4% to 117.20 – the highest it traded since January this year. Today’s upturn means that nearly 90% of all coronavirus-related losses have been erased. The bulls are now testing the key resistance in the context of the 3-year descending trend line that connects the swing highs. 

Shares already tested this resistance in July before pulling back to retest the broken 200-WMA at 107.00. The break is now more likely to happen amid the strong Q3 financial results. The next stop on the upside is 120.00, where a 2-year high is located.

Shares of Siemens gained 4% to hit a 6-month high above 117.00 after the German engineering group smashed profit estimates on the back of accounting gains and savings.

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