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Toyota Motors (TM) Might Slide Back Towards 98-100

As the share price of Tesla (TSLA) surges, other "traditional" car manufacturers are sliding. Toyota (TM) for example, broke below a key support around 110 last week, and is likely to continue being pressured towards the 2016 lows in the 98-100 area. 

Toyota Motors (TM) Daily Chart
(click to enlarge)

- TM's price action was bearish heading into 2016. 
- But we can see that a price bottom was formed in the first half of the year, with a low around 98.
- Then price rallied towards 123. 
- Price failed to clear 123 twice. 
- The 110 area was critical key support/resistance pivot.
- A hold above 110 would suggest respect for the price bottom, and kept the chart looking bullish. 
- However, with a break below 110, the market is at best neutral, and probably still bearish.
- Thus, we should not be surprised if in 2017, price falls back towards the 98-100 area.
- In this bearish outlook, there would still be upside risk back towards 115, but not above.
- A rebound back above 115 would make the chart look bullish again.

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