Stock of the day: Volkswagen
07 March 2023
DAX is currently making new long-term highs - we can assume that German companies are trading pretty well now, right? In today’s analysis, we have a promising setup on Volkswagen who recently canceled the bearish sentiment that’s been present here since March 2021.
What makes us think that the situation here changed? Well, first of all, VOW climbed above the long-term down-trendline (blue), connecting lower highs since November 2021. This alone can be perceived as a strong buy signal but worry not, we have more.
In addition to that, Volkswagen created a false breakout pattern at the end of the year and denied the wedge pattern (red) that was promoting a breakout to the downside. All this is bullish and triggers a proper, long-term buy signal. The positive sentiment will be canceled when the price comes back below the blue line but chances of that happening are now limited.