Volkswagen - uptrend
Updated
After the breakout of the price through the descending trendline, price moved constantly up and bounced back on the upper line of the ascending trend channel.
Two days ago, the price just responded to lower trendline of the channel and is probably going to continue this bullish movement, heading for the upper trendline where it is likely to reverse its direction again.
Two days ago, the price just responded to lower trendline of the channel and is probably going to continue this bullish movement, heading for the upper trendline where it is likely to reverse its direction again.
Note
Due to the high momentum of the price it is very likely that it is going to hit our first target at 145,35 during the next few days.Note
Just as expected, the price has reached the first target. Therefore I would recommend selling 2/3 of your Volkswagen holdings. You should keep 1/3 since, looking at the big picture, the price is still heading for our next goal at 169.40. Because of the upcoming election for the French presidency which is going into its final round on 7th May, the volatility on Monday is probably going to be fairly high. According to the election results last weekend though, I believe that an election in favour of Macron and, coming along with this, an increase in price, is more likely than a decrease.Note
Note
The next buying order should be placed at 139.5 which will then probably be executed during the next couple of days. I would suggest to enter the market here with 1/3 of your actual position size, in case the price keeps moving down towards the ascending trendline, where a second order with 1/3 is waiting. Yet, given the case that the price responds to the resistance level at 139.91, we should have a third order, charged with the same amount of money, placed at 144.5. When two of these orders are executed, this leaves us with the same amount of money invested, as we invested on 2017-04-19.Note
Now, that the price responded to the resistance level at 145.22 it does not seem too far that the price might drop back to the support level at 139.91. Therefore, we sell again 1/3 of our current VOW3D holdings and place a buy order at 139.91, charged with the amount we sold at this particular point.Note
Reduce current position by 1/3 in order to save some profits, as the price just reached the 138% Fibonacci level. Moreover, my volume-based vertex indicator implies an increased probability of a slowdown in upside momentum.
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