Current trend
The global correction trend continues in the shares of the German automobile corporation Volkswagen AG: quotes are trading just above the 116.00 mark.
One of the largest labor unions in the United States (UAW) continues to actively try to unite representatives of the auto industry, and yesterday it was reported that more than 1,000 employees of the Chattanooga plant have already signed corresponding certificates. Automakers are trying to prevent this in every possible way, and are even ready to raise wages, as last month, when indexation was made by 11.0%, and 833 employees of the company voted against membership in the association. According to the terms of the union, the employee must reach the maximum salary within no more than three years, and not eight, as before, which contradicts the internal policy of Volkswagen AG.
As for the financial condition of the company, it is quite stable, and even though the new report will be published only on March 13, analysts already predict revenue growth to 79.74 billion euros from 78.85 billion euros earlier. Earnings per share (EPS) are expected to reach 6.97 euros, which is still below 7.76 euros in the previous quarter.
Support and resistance
On the D1 chart, the asset continues to correct within the framework of the local "head and shoulders" reversal pattern, approaching the implementation level at 114.00.
Technical indicators continue to hold an unstable signal, without giving preference to either side. The fast EMAs of the Alligator indicator are very close to the signal line, and the AO histogram, being in the sales zone, forms new correction bars.
Support levels: 114.00, 106.00.
Resistance levels: 120.00, 128.00.
Trading tips
If the local decline of the asset continues and the price consolidates below the local support at 114.00, short positions with the target at 106.00 can be opened. Stop-loss – 116.00. Implementation time: 7 days and more.
In case of continued growth of the asset, as well as price consolidation above the resistance level at 120.00, long positions may be opened with the target at 128.00 and stop-loss around 118.00.
Hot
No comment on record. Start new comment.