FEZ’s bottom stocks
On January 4, 2016, the bottom stocks of the SPDR Euro STOXX 50 ETF (FEZ) were the following:
- Volkswagen (VLKAY): -6.6%
- EON: -5.3%
- BMW: -4.4%
- Deutsche Bank (DB): -4.3%
- Daimler (DDAIF): -4.3%
- Siemens (SIEGY): -4.3%
As you can see, Volkswagen was FEZ’s top loser.
The lawsuit against Volkswagen
- On Monday, January 4, 2016, the United States Department of Justice filed a civil lawsuit against Volkswagen for violating the Clean Air Act. The lawsuit claims Volkswagen installed illegal devices that damaged emission control systems in nearly 600,000 vehicles.
- This allegation has penalties that could cost Volkswagen billions of dollars, according to a senior Department of Justice official.
- The United States Environmental Protection Agency said it would take all necessary actions against Volkswagen to redress the violations of the nation’s clean air laws.
- Volkswagen didn’t have any immediate comments on the lawsuit. The news dragged down Volkswagen’s performance, and the stock fell 6.6% on January 4.
Volkswagen is currently trading at 124.9 euros. Its 52-week high is 132.09 euros, and its 52-week low is 86.5 euros. It returned -25% in 2015. The stock is currently trading at 3% below its 100-day moving average and 4% below its 20-day moving average. However, it’s trading 8% above its 50-day moving average. The 50-day moving average is a strong support point for the stock.
The 100-day moving average is a strong resistance point for the stock. The stock hasn’t been able to cross its 100-day moving average in the last eight months. The 20-day moving average is an immediate resistance point for the stock.
In the next part of this series, we’ll look at the performance of FEZ’s oil and gas industry on January 4, 2016.