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

1 website reply
  1. Sophie
    Sophie says:

    exactly my thoughts! But it seems that the management team of Volkswagen will be able to make sure that Volkswagen will survive this crisis. In last two weeks Volkswagen share have been recovering.

    Reply

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