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volkswagen share price downtrend

Volkswagen share price downtrend again? Find out why

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Volkswagen share price downtrend

Hi all,

Today on the 9th October 2016 we are going to discuss a little bit about a potential Volkswagen share price downtrend. And how you can make a profit from it. There is a serieus risk that Volkswagen share price downtrend will continue. It may look like that the Volkswagen share price is forming a bottom but we think that this could be a temporary correction in Volkswagen share price downtrend.

Why Volkswagen share price downtrend might continue again

Last week more bad news came out for Volkswagen came out and also this weekend. Volkswagen admitted last Tuesday 2th of November that they have also cheated on gasoline cars. And this weekend one of Volkswagen head designer Walter Maria De Silva quit his job and left Volkswagen company. Too make things worser one of Volkswagen shareholder Nordea Asset Management is looking to sue Volkswagen for the losses according to the Financial times.

Volkswagen share price downtrend for a few days or?

volkswagen share price downtrend

volkswagen share price downtrend

To anticipate a possible price move in Volkswagen share price downtrend, you need to look at  the three months chart. Sept, Oct. and Nov. to check how the price movement of Volkswagen is developing. When you look a the chart you will see clearly that stock price of Volkswagen is in a downtrend. The higher highs is getting smaller. However there seems a support level at the price level of €115,20. It has already bounce three times on that support level. In general if the support level is being test too often then that support level will break. In this case it means that if the support price level of Volkswagen is being testen often eventually there is a high chance that the stock price value of Volkswagen will go below €115,20 per share.

What is best way to make a profit short term?

The best way to make a good profit short term is by going short on Volkswagen Cfd shares at broker who provides trading CFDs with leverage. Why shorting Volkswagen CFDs shares with leverage? The reason for that is with leverage you can gain more profit. If you want to know on how to calculate your CFD trading cost and profit then read this tutorial: Calculate CFD cost in simple steps.

What to do if you are owning Volkswagen shares?

If you are in Volkswagen shares for long term like 2-3 years then I would say keep those shares and buy put options to protect your portfolio. See the put options cost as a premie that you pay for insurance. I think Volkswagen will survive this crisis. If  we look at the history of car companies, Volkswagen is not the only company who had a huge penalty. General Motors  and Toyota for example both companies had experience mayor penalties and they have survived. Or BP for example with their oil disaster in the US. However it may take a while before they recover in share price. And you don’t know how low the value of Volkswagen share price will go before the crisis of Volkswagen is solved. So again if you are holding Volkswagen shares for the longterm, buy put options to protect at least the value of your investment.

volkswagen shares

Volkswagen shares: Time to buy or not…

In this article we are going to discuss whether it is time to buy Volkswagen shares. We will outline the pro’s and cons of buying Volkswagen shares. After reading this article you can make your own decision whether you should start in Volkswagen shares or not.

What have happened to Volkswagen shares?

The American authorities caught Volkswagen cheating on the pollution test. Volkswagen had software that was able to sense when a vehicle was being tested for a pollution test. The software sensed that based on the position of the steering wheel, vehicle speed, the duration of the engine’s operation and barometric pressure. With this software Volkswagen diesel cars produce less pollution on the test while in the reality they produce more. Since the American Authorities have found that out the Volkswagen share prices have been dropping significantly. At the lowest point Volkswagen share had lost more then halve of its stock value.

Reasons to buy Volkswagen shares

Here are few reasons why you should consider investing in Volkswagen shares:

  1. The share price is really cheap
  2. The management of Volkswagen is working really hard to survive this crisis

Reasons not to buy Volkswagen shares

  1. The current Volkswagen share price is only a technically recovery from the crash.
  2. Volkswagen might receive such a huge penalties that it will be almost impossible for the company to stay profitable.

My thought

Currently is impossible for me to find solid grounding reasons to start investing in Volkswagen shares for the long-term like I have with Starbucks. With Starbucks shares I have good grounding reason to invest it for the long-term. In lesser than a year my Starbucks shares almost doubled in value. I think at this moment the only way to get profit from Volkswagen shares is by trading it. At the moment of writing this blog the current value of Volkswagen share is 103.70 Euro. I think this could be a price pivot point where the share will drop in price again.

If you are looking at the chart of Volkswagen shares, you will see that (according to our technical analysis) Volkswagen shares are still in a downtrend. Every technical analysis indicator such as the trend lines, horizontals, support and resistant lines are indicating that Volkswagen shares are in a downtrend.

Volkswagen shares downtrend

Volkswagen shares downtrend

 

So if you are shorting Volkswagen shares there is a good chance that you will be profitable soon. But don’t expect a huge decline. I think that the Volkswagen shares won’t go under the share price 100 Euro unless Volkswagen had cheated in Europe as well. If you own Volkswagen shares then keep it and don’t sell. Buy a few put options of Volkswagen to protect you portfolio. And if you want to make money with Volkswagen shares then start trading in Volkswagen cfds shares. By trading in Volkswagen CFDS shares you can make a lot of money with a small amount of cash investing. If you are interested in making money by trading CFDS then read this article : 1019 EURO profit with a invest amount of 400 EURO