VOLKSWAGEN BEARISH ON EMISSIONS LAWSUIT
Volkswagen is currently trading at 133.35–lower by 0.22% from the last closing.
In recent news, Volkswagen will be facing a trial on Monday in Germany as investors seek 9.2 billion euros in compensation arguing that the carmaker should have informed shareholders about a diesel pollution scandal before regulators did in September 2015.
The lawsuit bundles 1,670 claims brought mainly by VW’s institutional shareholders who have accused the carmaker of failing to inform investors about the scope of a scandal which has cost the company 27.4 billion euros in penalties and fines.
The plaintiffs claimed that if VW issued a warning to investors about the scandal before the U.S. EPA issued a “notice of violation” on Sept. 18, 2015, then institutional investors may have avoided losses on their shareholdings.
VW lost up to 37% of their value in the days after authorities exposed illegal levels of pollution emitted from VW diesel cars.
On the technical front, RSI is currently at 36.22% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger bands and is heading upwards.
Overall Bias is negative and trades can be initiated with tight Stop loss and profit targets.
TRADE SUGGESTION-LIMIT SELL AT 133.50 TAKE PROFIT AT 132.50 STOP LOSS AT 133.80