Current trend

Shares of Volkswagen AG, a German automobile corporation, are moving as part of an intensifying corrective trend, trading at 143.00.

In anticipation of the Q4 financial report release, analysts are increasingly adjusting their estimates regarding the further dynamics of the issuer’s securities. Thus, Citibank NA experts opened a 30-day buy recommendation, maintaining a Buy rating and the target price of 158.00. Economists forecast that EPS will exceed the previous figure by 5.0%, reaching 8.14 euros, and net cash flow will reach 41.0B euros. In addition, the company is expected to delay the launch of a new share repurchase program until the second half of the year, allowing it to free up cash for operating expenses.

According to preliminary estimates, revenue will adjust from 78.85B euros to 81.91B euros and earnings per share (EPS) from 7.76 euros to 7.48 euros. Statistics will be published on March 13.

Support and resistance

On the daily chart, after leaving the global downward channel of 126.00–100.00, the trading instrument grows to last year’s high of 160.00.

Technical indicators strengthen the buy signal: fast EMAs of the Alligator indicator are above the signal line, moving away from it, and the AO histogram forms corrective bars in the buy zone.

Resistance levels: 146.40, 159.10.

Support levels: 140.10, 128.10.

Trading tips

Long positions may be opened after the price rises and consolidates above 146.40, with the target at 159.10 and stop loss 143.00. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 140.10, with the target at 128.10. Stop loss – 144.00.