Shares of Volkswagen AG, a German automobile corporation, are moving within an intensifying global corrective trend, trading at 122.00.

On the daily chart, the price has left the downward channel with dynamic boundaries of 122.00–105.00 and is trying to consolidate above the resistance level of 120.00.

On the four-hour chart, a subsequent reverse testing of the support line and a decline to the area of 115.00 confirmed the exit of the quotes from the global corridor, after which a reversal took place and growth began, which will receive significant support after overcoming the local high of 126.00. In case of further upward movement, it may reach the levels of early autumn at 140.00.

Technical indicators gave a buy signal: fast EMA of the Alligator indicator approached the signal line and are ready to cross it, and the AO histogram forms ascending bars in the sell zone, approaching the transition level.

Trading tips

Long positions may be opened after the price rises and consolidates above 125.30 with the target at 136.20 and stop loss 122.00. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 119.00 with the target at 110.00. Stop loss – 122.00.