Goodyear Tire Set For Further Falls
Anna Coulling | Aug 13, 2019 07:17AM ET
Another of the stocks I monitor regularly is The Goodyear Tire & Rubber Company (NASDAQ:GT), and in post on August 6th, I suggested this stock was set for further declines. And yesterday’s price action has done nothing to change my view as GT closed gapped down on the day at $11.92 per share.
Yesterday’s price action was also significant as the price broke away from the congestion at $12.50 and which now presents a barrier of resistance to any recovery. In addition, and to add further to the bearish sentiment, a low volume node is immediately ahead at $11.50 with the trend monitor indicator confirming the bearish picture.
To find out where the stock is heading longer term, we need to consider the monthly chart, which looks ominous. However, the chart is also highlighting GT is likely to rebase around the $9 per share level in due course with a possible test of the $8.53 low last seen in 2011. The all-time low is $3.17 which, at the moment seems an unlikely target in the short term.
For longer-term investors looking for an opportunity this stock will require patience, as GT is set to fall further before an extended consolidation phase develops in the $8 – $9 price region and provided we see active buying by the market makers at these levels followed by a successful low volume test recovery should follow. All of which is likely to take months, and as always Wykoff’s second law of cause and effect will dictate the extent of any recovery. In other words, the longer GT is in consolidation, the more sustained will be the recovery.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.