Car Stocks are Ready to Rise Like Oprah is Buying Again
- Posted by Greg Harmon
- on June 21st, 2011
I have a nice car. A Mercedes Benz CLK Convertible. Sweet right. Actually I should say it used to be a nice car, in 2000 when I bought it. I also have a Nissan Armada that is 6 years old. My in-laws have four cars all 10 years old or more the crown jewel being a Chevrolet Suburban that has over 175,000 miles. My parents two cars were new in 1998. I see new cars on the road, but I really do not know anyone that has bought a new car. Additionally I get phone calls from the local Mercedes dealer telling me that have need of more year 2000 convertibles due to demand for used cars. What? Someone specifically wants to by my 11 year old car? So no one is buying new cars and there is increasing demand for used cars. With this backdrop why are all the car stocks looking ready to move higher? It must be Oprah is in the market again. Let’s take a look.
Ford Motor, $F
Ford, $F, is rising off of a bottom at 12.80 Tuesday. It’s Relative Strength Index (RSI) is now turning higher and the Moving Average Convergence Divergence (MACD) indicator is improving towards a positive cross. Over 13.50 it can run to 14.55 previous support and resistance with 16.50 resistance above that.
General Motors, $GM
General Motors, $GM, is also rising out of a base Tuesday. The MACD has crossed positive and the RSI is rising, looking to challenge the mid line. If it continues to hold over 29.50 look for it to test resistance at 30.20 an then 30.65 before a run to 31.80.
Toyota Motors, $TM
Toyota Motors, $TM, is moving from the base as well with a MACD that is crossing positive and a RSI that is rising to test the mid line. It is approaching the mid line of the Bollinger bands at 80.88 and above that has resistance at 82.50 and then 84 before it can run higher.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- A clear way to trade Fairway
- Premium Earnings 3-30-15
- Top Trade Ideas for the Week March 30, 2015: Bonus Idea
- Top Trade Ideas for the Week of March 30, 2015: The Rest
- Top Trade Ideas for the Week of March 30, 2015: The Rest Premium
- Top Trade Ideas for the Week of March 30, 2015: The Best
- SPY Trends and Influencers March 28, 2015
- Macro Week in Review/Preview March 27, 2015
- Trading the Ratio of Oil Servicers to Oil
- Trading 3 Black Crows, A Hammer and On Semiconductor