Volkswagen AG, H4

On the four-hour chart, Volkswagen AG shares are consolidating in a narrow range of 109.81–116.19 after a long downtrend. At the moment, quotes are holding at 113.00, forming Piercing pattern, Bullish Engulfing pattern, Inverted Hammer and Doji candlestick patterns, which signal reaching a low price area and an upward reversal. Most likely, after the accumulation phase, the "bulls" will make an attempt to overcome the upper limit of the consolidation channel, which coincides with the resistance level of 116.19, overcoming which will allow the "bulls" to restore the price to the area of 122.98–129.98. An alternative scenario is possible if the "bears" continue to put pressure on quotes towards the key support level of 109.81, the breakdown of which could strengthen the negative dynamics in the area of 101.20–92.22.

Volkswagen AG, D1

The daily chart shows the formation of candlestick analysis patterns Bullish Harami, Inverted Hammer and Bull Harami Cross in the area of 109.81–113.00, signaling pressure from buyers who are likely to continue to hold positions above the key support level of 109.81 and direct the price to the resistance level of 116.19. Consolidation of the asset above this level will be a catalyst for opening long positions with targets of 122.95–129.98.

Support and resistance

Support levels: 109.81, 101.20, 92.22.

Resistance levels: 116.19, 122.95, 129.98.

Trading tips

Long positions can be opened above 116.19 with targets of 122.95, 129.98. Stop-loss — 113.00. Implementation time: 7 days and more.

Short positions can be opened below the level of 109.81 with targets at 101.20, 92.22. Stop-loss — 113.00.