Volkswagen (XETRA:VW) advances on Wednesday's trading session over 5%, reaching the €154.7 per share, being the highest level since March 05th. The short-term picture under the Elliott wave perspective shows the German automotive manufacturer advancing in an upward sequence that looks like an incomplete wave ((iii)) or ((c)) of Minute degree identified in black.
In the previous chart, we observe the bullish structural series that Volkswagen develops since March 23rd when the German automotive manufacturer found support after its massive sell-off at €99.2 per share. The first upward sequence developed by VW unveils an overlapped five-wave structure that has a leading diagonal structure identified as wave ((i)) or ((a)) of Minute degree labeled in black. This impulsive formation found resistance at €148.9 per share on April 30th.
Once the first upward leg had been completed, Volkswagen started to retrace in three movements identified as an (a)-(b)-(c) sequence of Minuette degree labeled in blue. With this completion, that corresponds to wave ((ii)) or ((b)) in black, we projected a short-term ascending channel in orange.
After the corrective wave completion, VW jumped over the descending trendline that connects the origin of wave (a) with the end of wave (b) in blue validating the start of a new bullish cycle corresponding to wave ((iii)) or ((c)) in black. The upward movement that remains in progress shows an intraday ascending channel, which reveals that the price action could continue extending its gains.
From the Elliott wave perspective, Volkswagen currently advances in its third wave of Minuette degree labeled in blue. The test of the upper line of the intraday channel in brown, lead us to observe that VW could start to consolidate in its fourth wave.
For the coming trading sessions, we anticipate a bullish continuation that could advance until the zone of the unfilled gap between €163.2 to €167.8 per share. This movement could agree with the thrust of the upper guideline of the ascending channel in orange.
In conclusion, as long as the price action holds above €136 per share, our preferred market positioning remains on the bullish side until the zone of the gap unfilled. Finally, if Volkswagen soars over the last swing high at €175.5, our market indication for long-side positioning will increase.