VOLKSWAGEN AG VZO O.N. - Plunged More Than 9% Since February - 04/06/2017 (GMT)

The Volkswagen AG (VOW3.D:Xetra) stock price dropped more than 9% since February following the strong rebound on $156.30 resistance level which was hit it on January 25th of 2017. Today the session started with a gap to the downside below the $132.80 barrier while it may complete the fourth negative day in a row. The latter level was acting as a powerful support level in the previous sessions, however, now the stock slipped below it and we are waiting for an upside recover of the losses. The next level to watch is the $128.40 support level, which overlaps with the 200-daily SMA and the 50-weekly SMA, and then back to the descending trend line near $136.50.

The technical indicators seem to be in agreement with the bearish for the moment scenario on the daily timeframe. The MACD oscillator fell below its trigger line as well as the RSI indicator is holding near the 30 level. The stochastic oscillator tried to run up to the positive area in the 4-hour chart but the strong bearish movement drove its moving averages to the downside while in the daily chart is moving lower.