Volkswagen AG stock retracement expected

Volkswagen AG, known internationally as the Volkswagen Group, is a German multinational automotive manufacturing company headquartered in Wolfsburg, Lower Saxony, Germany and indirectly majority owned by Austrian Porsche and Piëch families.

Volkswagen stock market

Like many other german and European automotive manufacturing companies, Volkswagen AG (VOW) stock analysis forecast is bearish, with monthly in a clear downtrend with a strong monthly imbalance located around 49 per share. There is not a single reason to buy shares of Volkswagen AG (VOW) stock, it would be suicidal right now.

This bearish forecast is being affected by COVID-19 coronavirus pandemia but the bearish bias was already present on Volkswagen AG (VOW) before the virus scared investors to death. Take a look at Volkswagen AG (VOW) monthly analysis and the strong supply imbalance located around 49 share price area.

Volkswagen AG chart analysis

Volkswagen AG stock analysis forecast

If you still want to read about fundamental analysis and news, make sure it does not cloud your mind or blind your technical analysis judgement or you will probably missing a lot of very good trade opportunities on the stocks that you are trading.

I’ve read that Volkswagen AG (VOW) is burning $2.2B a week as coronavirus halts production and that the demand in China is picking up again, but production is only at half the level prior to the crisis. The company has credit lines worth in excess of 20 billion euros, but considers those facilities only as a back-up for when capital markets are shut.

The huge sell-off made the passenger car sales go down 40% in March 2020. The company reaffirms its forecast of paying a dividend but it was looking closely at all investment and spending needs.

The coronavirus is doing nothing but helping Volkswagen AG (VOW) stock to drop as expected from previous supply levels, it adds nothing new to our supply and demand stock analysis.

Volkswagen AG (VOW) price action analysis using supply and demand strategy

This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.

Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind. 

As supply and demand traders, we do not need to pay attention to Volkswagen AG (VOW) news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.

Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements on Volkswagen AG (VOW).

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

If you want to learn how to trade using our supply and demand trading strategy, join our supply and demand stock trading course.

There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) if you are in a country where it’s allowed.

Alfonso Moreno
Alfonso Moreno
Full time trader, expert technical analyst and founder of Set and Forget supply and demand online trading community. Traveler, photographer and adventurer.

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