Volkswagen in Focus: Analysis and Initial Successes

Volkswagen's chart has been performing well, aligning nicely with our expectations, though it might not apply universally for all Elliott Wave Analysts. We've made three entries into Volkswagen, closing one while still holding two. Our first buying decision was timed during significant pressure on the German stock market, particularly impacting the automotive sector. Since then, the movement has been favorable, and broadly speaking, we believe we entered near what appears to be a foundational low. Whether this proves to be the absolute bottom or if a new bottom emerges in the years ahead remains to be seen. However, we can confidently state we entered at a local low, with our positions showing a 12% increase since the last entry and a 23% increase from the first open entry.

We're keenly interested in how Volkswagen's dividend yield will play out and what the future holds, which looks promising at this stage. We'll continue to closely monitor and analyze this stock, keeping our positions open without any current reason to close. Having already secured some profits and adjusted our stop-loss to our entry price, we're well-positioned. Should any changes be made, we'll certainly keep you informed.

Comment:

Volkswagen continues to move in the right direction since our second entry. We have adjusted the stop loss to the level of €113.40, anticipating a continued rise to at least €134.70 for Wave 3. For those who joined us on our very first entry into Volkswagen, we're keeping our stop loss at the pre-given level. Given our expectation of further upward momentum, we do not want to be prematurely stopped out, so we're leaving it at €99.80. Following Wave 3, Wave 4 is expected to ensue, during which we will look for new entry opportunities. So far, all three entries have been successful.

Comment:

After testing the level of €126, Volkswagen saw a significant sell-off but managed to find support quite precisely at €114.84. Our stop-loss is still set below this at €113.40. We don't believe there should be a further decline, as Wave 3 has not even come close to completion. Wave 3 should extend to at least €134.70, indicating that we should certainly remain invested and approach this patiently. We've already taken profits, and in the worst case, we'll be stopped out with additional profits.

Trade closed: stop reached:

We got stopped out on our short term trade here in profits after taking profits.
Incredible selloff that occurred the last days but we are still going to monitor Volkswagen and we will be sending out new insights and possible setups soon ✅

Comment:

After being stopped out in profit on our VW long trade, we've witnessed a significant rise to a zone we consider a potential resistance area for Volkswagen. It might be challenging for VW to surpass this level, as we likely encounter the peak or the top of Wave (i), unless we see a surge in the coming days, which could signify an end. Nonetheless, even if it doesn't mark the end, it practically should. The price has touched the trend channel for the third time since September 2022 at the top of Wave ((i)). We now expect the subordinate Wave (ii) to drop to a level between 50% and 78.6%, with 50% and 61.8% seeming most probable to us, though 78.6% is also possible. A double bottom at €112.28 is conceivable but not expected, as it's rarer. For the overarching Wave 3, given the stronger structure, we anticipate a rise to at least 227.2%, or €146. We'll keep you updated and won't issue a limit order just yet, as we may need to revise it if there's another price increase. Thus, we'll wait to see if this zone can be flipped or if we drop lower, and then place a new limit order for Volkswagen at the first sign of weakness.

Comment:

Volkswagen continues to show a relatively good uptrend, but we believe we might soon see the end of this surge as we anticipate nearing the completion of Wave (i). Subsequently, we'll be looking for entries for Wave (ii). Currently, we've also exited upwards from the trend channel indicated by the black line and have seen a retest, suggesting the possibility of further upward momentum. Should we continue to push higher, we must continue to look for entries, as always. We've been able to take good profits with Volkswagen, and for this upcoming Wave ((iii)), we anticipate a minimum level of 147.44 euros. This provides opportunities to place new entries. A new idea will be send when we are setting the limit order!

Comment:

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