Volkswagen: A long-term bottom in the makingVolkswagen AG PrefXETR:VOW3nomadhedgeVolkswagen has found buyers near the end of what I count as a WXY correction on the monthly chart. Wave (II) may already be complete, but the fib.1 extension sits at 67, so there is still room for another low before the next long-term advance. The restructuring gives me a fundamental reason to watch this setup. Volkswagen is targeting more than €6 billion in profitability improvement by 2030 through job cuts, plant consolidation and fewer models. Lower investment spending and asset sales could also help cash flow. Strong sales growth does not have to return immediately for the business to improve. Lower costs and better margins could help rebuild confidence over time. Competition from China and weak demand remain risks, and the restructuring will take years to deliver its full benefits. For now, price is still below some key moving averages. A sustained move back above them would give me more confidence that the trend has turned. My view is that Volkswagen has formed a long-term bottom. Another low toward 67 would still fit that count. A sustained break below that area would make me reassess it.