Volkswagen Technical Analysis | Volkswagen Trading: 2022-03-17 | IFCM Canada
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Volkswagen Technical Analysis - Volkswagen Trading: 2022-03-17

Volkswagen AG Technical Analysis Summary

Neutral
SellBuy
Strong SellStrong Buy

Below 131.27

Sell Stop

Above 161.19

Stop Loss

Ara Zohrabian
Ara Zohrabian
Senior Analyst
Articles2785
IndicatorSignal
RSI Neutral
MACD Buy
Donchian Channel Sell
MA(200) Sell
Fractals Neutral
Parabolic SAR Buy
Fibonacci Sell

Volkswagen AG Chart Analysis

Volkswagen AG Chart Analysis

Volkswagen AG Technical Analysis

The technical analysis of the Volkswagen stock price chart on daily timeframe shows #D-VOW,Daily is rebounding toward the 200-day moving average MA(200) and is about to test Fibonacci 23.6 resistance. We believe the bearish momentum will resume after the price breaches below the lower boundary of Donchian channel at 131.27. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above the upper boundary of Donchian channel at 161.19. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic indicator signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (161.19) without reaching the order (131.27), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis of Stocks - Volkswagen AG

Volkswagen stock price closed marginally higher after the CEO said lack of wiring harness from Ukraine has become the main supply chain bottleneck. Will the Volkswagen stock price continue advancing?

Volkswagen AG is a Germany-based auto giant which produces passenger cars and light commercial vehicles and sells them globally. Its market capitalization is $115.82 billion. The stock is trading at P/E ratio (Trailing Twelve Months) of 5.95 currently, automaker’s revenue (ttm) was $254 billion, while the Return on Equity (ttm) was 13.97% and the Return on Assets (ttm) at 2.98%. Volkswagen said on March 15 the VW brand returned to profitability in North and South America while capturing a 16% market share in China in 2021. However the CEO said the lack of wiring harnesses from Ukraine has overtaken a shortage of semiconductors as its biggest supply chain bottleneck. The carmaker had said earlier its operating profit doubled in 2021 to just under 20 billion euros thanks to higher prices and a favorable product mix, despite total unit deliveries hitting a 10-year low of 8.9 million. Looking forward, the company expects to increase deliveries by 5-10% in 2022 and boost revenues by 8-13%. However, the CEO told wire harnesses, which bundle up to 5 km of cables in a car and are unique to each model, could force Volkswagen to revise its outlook if alternative sources are not found in 3-4 weeks. Expectations of lower output are bearish for a company’s stock. However, the stock price edged up 0.2% on the day after the announcement.

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Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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