We reviewed the charts of Goodyear Tire & Rubber (GT) on Nov. 9, writing that "Traders could wait for a pullback to the $22 area on GT. This would fill a small gap on the chart. Risk to $18 for now. On the upside $26 and then $62 are our price targets for now."
Traders got a dip to buy so let's kick the tires again.
In this updated daily bar chart of GT, below, we can see that prices recently tested the rising 200-day moving average line. GT is back above the 50-day moving average line. The daily On-Balance-Volume (OBV) line shows a dip in December after a rise from July. The Moving Average Convergence Divergence (MACD) oscillator just crossed to the upside for a cover-shorts buy signal.
In this weekly Japanese candlestick chart of GT, below, we can see a successful test of the rising 40-week moving average line. The weekly OBV line is bullish and the MACD oscillator is, too, even with the two moving averages extremely close.
In this daily Point and Figure chart of GT, below, we can see a potential upside price target in the $27 area.
In this weekly Point and Figure chart of GT, below, we used close only price data and a five box reversal filter. Here the software shows us a potential $62 price target.
Bottom line strategy: Traders could go long GT at current levels or add to existing longs at current levels. Continue to risk to $18. Our price targets are $27 and then $62 longer-term. Strength over $35 is bullish.
