Goodyear Tire (GT) shares gapped sharply higher last week on news that activist investor Elliott Management took a stake in the tire manufacturer. Can the rally continue and what price targets could be reached? Let's check.
In the daily bar chart of GT, below, I can see a bottom pattern taking shape from October. The shares traded sideways with dips to the $10 area being bought. Trading volume shows an increase in activity from early November.
The On-Balance-Volume (OBV) line has trended higher from late December and tells me that buyers of GT have been more aggressive than sellers. The Moving Average Convergence Divergence (MACDC) oscillator is in a bullish alignment above the zero line. The 200-day moving average line is flat but the slope of the 50-day line has turned positive.