Volkswagen Stock Chart Is Looking Like BP's After Oil Spill
- Technical analysts say recovery in VW shares will take years
- BP shares are still 42 percent below their high of 2010
VW Faces Costly Fixes as it Seeks to Cut Spend
This article is for subscribers only.
An ominous chart pattern that formed in shares of BP Plc after its 2010 oil spill is now appearing in Volkswagen AG -- and that’s bad news for bulls.
It’s known in the jargon of technical analysis as a breakaway gap, a price swing that happens so fast that it fractures the orderly progress of trading and disrupts an existing range. In VW, it happened at the open on Sept. 21, when the carmaker plummeted from 162.40 euros to 139.95 euros without ever touching any of the price points in between.