Goodyear Tire & Rubber Co. (GT) has been trending lower the past two years - a lot of mileage. Prices could make a new low close for the move down today keeping the downtrend going and opening the way to new price targets.
In this daily bar chart of GT, below, we can see that the declining 200-day moving average line has defined the downtrend all year and prices have spent most of the past year below the bearish 50-day average. The daily On-Balance-Volume (OBV) line has gone to sleep and is not showing any sustained aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator just turned down again from the underside of the zero line.
In this weekly bar chart of GT, below, we can see the topping pattern for GT in 2017 as well as the downtrend. Prices are below the declining 40-week moving average line. The weekly OBV line is mostly bearish as is the MACD oscillator.
In this Point and Figure chart of GT, below, we can see the new low for the move down at $18.50. This opens the way to a potential longer-term decline to $8.00. $16.00, however, is a near-term price target.
Bottom line strategy: GT has been unable to make a turn from its downtrend - stay defensive and watch out for lower lows in the weeks and months ahead.
