Not All Car Stocks Stink
- Posted by Greg Harmon
- on April 17th, 2012
It does not matter if the government bailed them out or not, car stocks suck. Ford, $F did not take any money and got a lot of praise for that, but the stock has languished the last 2 year. General Motors $GM was supported through bankruptcy and has re-emerged with a stock that has done nothing but go lower. Even Toyota, $TM, which recovered from a government bashing cannot get back above a consolidation zone. They all stink. But there is an exception to every rule.
Tata Motors, $TTM, is different. After coming off of a bottoming ‘W’ pattern is has been consolidating between 26 and 29 for 2 months. Today it broke that consolidation higher. Relax you did not miss the break out. There is resistance higher at 30.50 and 34 before the previous high at 37 and then the Measured Move from the breakout to 40. And it is getting good support for a move higher form a Relative Strength Index (RSI) that is bullish and rising and a moving Average Convergence Divergence (MACD) indicator that has been trending higher and has just turned positive. The Bollinger bands continuing to open higher area another plus. The move from the bottom took 6 weeks until the consolidation so expect about 6 weeks for the next leg.
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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)
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