Will VW undergo similar gains to the likes of Ferrari, Merc & BMW?

Taking a look at Volkswagen ahead of the car maker’s earnings. We have seen a mixture of earnings in the car manufacturing sector, with some EV companies struggling and reducing their forecasts to have more conservative targets. Whereas other makers of petrol and diesel cars have shown mixed results. The likes of Mercedes, Ferrari and BMW have experienced gains so far this year, so can Volkswagen follow suit. It is important to note that VW is made up of the Volkswagen brand and many others, which may have a different impact compared to the likes of Mercedes, Ferrari and BMW. Currently, its stock is trading at around €118.40 a share. Looking at the daily chart, we can see that the share price has now climbed above its 200-day moving average after trading below it since September 2021. In theory, this is a bullish indication suggesting that potentially a new trend is in the process of forming. We can see after the breakout above the 200MA the price pulled back for a test of the newly created support, the previous resistance along the 200MA has flipped to support. We have now witnessed a bounce off the support (6^th-7^th March) with the potential for a rally towards a new high point. The resistance in focus here is the level of €120.97 followed by this year’s high of €128.10. A break above €128.10 would allow investors to target the area of €130-€133. At the moment, the key support here for the bulls is the level of €114.71. A break below would suggest that perhaps the momentum is starting to fade with an increased volume of profit-taking, increasing the likelihood of a fall towards €106-€108. The technical indicators are a little mixed, the MACD has turned negative but the RSI is in a neutral position as it reads 48. With this being a daily timeframe, the MACD tends to be more sensitive and doesn’t offer accurate longer-term projections.