Not Just Any Car Stocks
- Posted by Greg Harmon
- on February 6th, 2014
Automobile stocks are still the place to be, just not the ones you think. Ford, $F and General Motors, $GM, still have a lot of ugliness in their charts. So turn your sights to a different perspective on them. The makers of automotive systems are looking great. Below is a look at two of them, BorgWarner, $BWA and Magna International, $MGA.
BorgWarner, $BWA has had a wonderful trend higher that was spoiled recently by a pullback in a channel. It is now testing the top of that channel though and has some great indicator readings to support a break higher. The Relative Strength Index (RSI) is moving up and making a higher high as the MACD is starting to curl higher and prepare for a bullish cross. Finally the accumulation/distribution statistic shows that there were buyer all through the pullback and they are getting more aggressive. A move over the channel at 53.75 triggers a long entry.
Magna International, $MGA, is similar. It had a pullback in a rounded bottom through December and then again recently in a channel. Thursday it broke the channel higher though. It has the same characteristics as BorgWarner from the technical indicators. The RSI is moving higher, the MACD is level and ready to turn higher, and the Accumulation/distribution statistic is making new highs. This is ripe for a trade or more against a stop at about 81.50.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through January 2014 Expiry and sign up here for the free 7 day trial before you pay.
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)
- Checking Out Red Robin the First Day of Winter
- Premium Earnings 12-22-14
- Top Trade Ideas for the Week December 22, 2014: Bonus Idea
- Top Trade Ideas for the Week of December 22, 2014: The Rest
- Top Trade Ideas for the Week of December 22, 2014: The Rest Premium
- Top Trade Ideas for the Week of December 22, 2014: The Best
- SPY Trends and Influencers December 20, 2014
- Macro Week in Review/Preview December 19, 2014
- Dragonfly Capital Views Performance Through December 2014 Expiry
- Charting An S&P 500 March Higher