VOW3.DE closes higher for the 3rd day in a row
Volkswagen AG (VOW3.DE) Technical Analysis Report for Jun 14, 2018 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, VOW3.DE finished Thursday at 163.34 gaining €3.56 (2.23%). Today's closing price of 163.34 marks the highest close since May 30th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 161.10, the share confirms its breakout through the prior session's high having traded €3.20 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (VOW3.DE as at Jun 14, 2018):
Thursday's trading range was €6.22 (3.92%), that's far above last trading month's daily average range of €3.42. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly above average.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. In spite of a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
Breaking through the key resistance level at 161.44 today, it is now likely to act as support going forward. Prices are trading close to the key resistance level at 164.78.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already. VW managed to break above the 200-day moving average at 161.29 today for the first time since October 4, 2017.
Trading close to April's low at 157.72 we might see further downside momentum if potential sell stops at the level get activated.