VW is a good way to celebrate the European in youThe trendline is being followed closely for this American version of the European Automotiv Manufacturer stock. If it retraces just a little more it would be easier to assume the stock price would soar to the 1.618 fibonacci level. The only problem with that valuation is the industry of this successful company. In Warren Buffett's book about what he looks at when deciding whether a company is a good investment, he clearly identifies the high overhead of manufacturing automobiles. The machinery that it takes to make the cars changes every year, and the competition may be the fiercest of any industry. This adds a lot of cost to the companies that operate in this stressful industry. That being said, many of us are biased in favor of VW. The company and it's cars and vehicles are a part of our history. My family members work for this company. Buy what you love is a good strategy with this European stock. There is much upside and still some downside possibility. This is a cheap price though, assuming it could make it's way to 2X this price. Stops need to be in place in this marketplace, because nothing is certain. Except for death and taxes. My family has approved of the newer models and that is enough for me. Liking this trendline bounce but wanting the huge extension; and skeptical of the automotive industry stocks as anything but BUY and Hold.
VLKAY
VLKAY: 35% upside in the stock$VLKAY has triggered a monthly breakout from a massive accumulation base, and after a good pullback into earnings support, flashed a buy signal for us, in the monthly, weekly and daily timeframes. Such an opportunity is not to be missed!
Let's enter longs at market open gradually over 3 days, aiming to build a 14% position. The stop loss orders are not required, since we could manage risk with options in the long term. For now, entering the stocks position is more important, and the odds of holding this support are very high, due to both technical as well as fundamental variables.
Good luck,
Ivan Labrie.
