VOLKSWAGEN BEARISH AFTER PORSCHE ANNOUNCES END TO DIESEL ENGINES
Volkswagen is currently trading at 150.45-lower by 1.31%. However, the stock has been closing in green in the last 5 trading sessions.
In recent news, Volkswagen announced on Sunday that its Porsche division will stop offering diesel versions of its cars. They further added that they will focus on hybrid and battery-powered vehicles instead. Volkswagen has admitted to deliberately cheating diesel emissions tests, sending shockwaves through the automotive industry and causing a sector-wide crackdown on polluting diesel engines.
According to German news sources, Porsche is suspected of manipulating engines in the past to improve their sound on the road at the expense of higher emissions, adding this function was not active in a testing environment. Responding to the allegations the CEO said that Porsche was owning up to the issue, and also added that it had affected about 13,500 diesel vehicles. The carmaker further said that they are also examining petrol cars as a precautionary measure.
On the technical front, the RSI is currently at 68.1% and suggests that the market can move in the downward direction. The %K has crossed the %D from above to the downside at 92.95% and suggests that the market may head downwards. The Current Price is above the middle line of the Bollinger bands but is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT SELL AT 150.80 TAKE PROFIT AT 149.80 STOP LOSS AT 151.30