Current trend

Shares of Volkswagen AG, the German automobile corporation, are moving within the framework of a strengthening correction trend, holding around ​​131.21.

The concern is exploring the possibility of selling 6.0% of the shares of its heavy-duty truck division, Traton SE, to institutional investors ready to make an accelerated deal in a few weeks. The value of the package is estimated at 1.0B euros and may change depending on market conditions. In addition, the company continues to implement a cost-cutting program designed to save up to 10.0B euros by 2026, within which it plans to reduce expenses on administrative personnel to 20.0% of their current level.

However, the forecasts for this quarter remain positive: analysts expect revenue of 82.88B euros, higher than 79.97B euros in the same period a year earlier, and earnings per share could be 7.63 euros, slightly lower than the figure for the second quarter of last year at 7.66 euros.

Support and resistance

On the daily chart, the trading instrument is declining, working out a reversal pattern Head and shoulders with the Neckline at 132.00.

Technical indicators are strengthening the sell signal: the fast EMA of the Alligator indicator are below the signal line and are moving away from it, and the AO histogram is forming correction bars in the sell zone.

Resistance levels: 136.00, 144.00.

Support levels: 129.90, 120.00.

Trading tips

Short positions may be opened after the price declines and consolidates below 129.90, with the target at 120.00. Stop loss is 133.00. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 136.00, with the target at 144.00 and stop loss 133.00.