Volkswagen’s shares have been on a downward trajectory for about three years now, dropping by more than 50%. However, after finding a bottom (presumably) in October 2023, the company’s stock has been ticking higher and forming an upward-sloping channel. While it is yet to be seen whether these shares have really bottomed out, certain developments might boost the company’s outlook going forward. Due to mounting protests from farmers and others, discussions about the European Union’s Green Deal and its feasibility have emerged recently. It is becoming increasingly apparent that ambitious plans might not be achievable within the initial deadline set in the deal. Furthermore, the question of the cost of achieving these goals has become a major subject of talks among members of the European Parliament. So far, European lawmakers have scrapped some of the initial rules, mainly affecting the agricultural sector. Nevertheless, it is possible that phasing out of combustion engine cars and reducing emissions will undergo a similar reassessment that could positively affect European carmakers, including Volkswagen, which is somewhat behind in electrifying its fleet compared to its competitors.
Illustration 1.01 Illustration 1.01 shows the daily chart of Volkswagen stock. Currently, the price is trading near the lower bound of the upward-sloping channel that acts as a support. If this support holds, it will be positive for the stock in the short term.
Technical analysis gauge Daily time frame = Slightly bearish Weekly time frame = Neutral *The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.
I wouldnt hold out much hope until such time Europe is reasonable about importing gas from Russia and it's removed from the US foreign policy as defacto puppet state. There's no incentive for the USA to change its foreign policy, it seems spineless bureaucrats in the EU won't be incentivized to change either until some kind of revolt happens or countries start leaving the EU. The grave has been dug a long time ago.
serumO
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@Cenotaph, yeah yeah US puppet state, reasonable about fckn ruzzias gas blah blah. Spinless EU bureaucrats vs ubermensch in Kremlin LOL.
Tradersweekly
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@Cenotaph, I do not think more countries will start leaving the European Union but thank you for your input.
@Cenotaph, Oh, that's what I thought you said by: "countries start leaving the EU." Maybe I misunderstood, sorry.
Cenotaph
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@Tradersweekly, what i mean is that the status quo is EU is a defacto puppet state of the USA. Change needs to be forced, one such force can be when key countries leave. At any rate, as long as the USA can dictate how gas is imported and used in Europe there's no reason to believe the EU economy will change much unless it's to the benefit of the USA.