Current trend

The global correction trend in the stocks of the German automobile corporation Volkswagen AG continues, and the shares are trading just above the 131.00 mark.

The company is still actively expanding in international markets, and there were reports of Volkswagen AG's intention to acquire the Chinese startup Zhejiang Leapmotor Technology, which has developed an exclusive platform for the production of electric vehicles. At least, Reuters reports that a joint venture between Volkswagen China and FAW Group is interested in buying the platform. The CEO of Zhejiang Leapmotor Technology confirmed that he is in talks with two foreign automakers, but declined to name names.

Earlier, the company also announced that it plans to significantly increase the indicators in the second half of 2023. According to management, it plans to increase cash flow despite the fact that the forecast for car production for the year remains from 9.0M to 9.5M units, with earlier expectations at more than 9.5M units.      

Volkswagen AG's financial report will be published on October 26, and revenue is expected to be 73.01B euros, down from 80.06B previously, and earnings per share – in the range of 7.75 euros, which is significantly higher than 6.48 euros in the previous quarter. 

Support and resistance

On the daily chart, the asset continues to correct in the global downward channel, holding slightly above the year's low, located at 129.00.

Technical indicators hold a stable sell signal: the fast EMAs of the alligator indicator are well below the signal line, and the AO histogram, being in the sales zone, forms new correction bars.

Support levels: 129.00, 117.00.

Resistance levels: 136.00, 146.00.

Trading tips

If the asset reverses and continues local decline and the price consolidates below the local support level of 129.00, short positions can be opened with a target at 117.00. Stop-loss – 136.00. Implementation time: 7 days and more.

If the asset continues local growth, and the price consolidates above the resistance level of 136.00, long positions with a target at 146.00 and stop-loss at 130.00 will be relevant.