American Axle is the Only Auto Play
- Posted by Greg Harmon
- on August 16th, 2012
The Automobile stocks have been struggling to survive. They are currently bouncing so this might be their big break. But another smaller company that makes the guts for these cars, axles, drive trains, chassis and such is leading them higher. I noticed American Axle & Manufacturing, $AXL, last weekend suggesting that a break over 11 looked good to start a run higher. Now it is breaking higher and looks ready for more. Take a look.
American Axle & Manufacturing, $AXL, Daily
The daily chart above shows the break above 11 and strong move higher. There is a gap to fill at 11.52 above and then relatively minor resistance up to 12.05 with the previous top at 13. The Relative Strength Index is rising and bullish with a Moving Average Convergence Divergence indicator (MACD) that is positive and growing. Things are driving higher. But the weekly view is also looking strong. Two long white candles finishing near the highs and a RSI that is rising and about to turn bullish with a MACD that is positive and growing. Over all of the Simple Moving Averages (SMA), it has resistance over the 13 level at 16.20. But it does not end there. The 3-box reversal Point and Figure Chart (PnF) has a price objective of 16.50, right near that early 2011 high. Everything points higher. And if that was not enough, there is over 14% short interest in the name to fuel a squeeze higher. Are you ready to buy yet?
American Axle & Manufacturing, $AXL, Weekly
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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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