TM trade ideas
Auto Sector is a Leading Indicator of Market TopsThis is a custom index using Toyota+Honda+Ford's long term charts plotted against the S&P 500 (both using moving averages to smooth data).
It's pretty simple, when the auto sector is diverging from major equity indexes in a negative fashion, that = bad stuff ahead. The auto sector has shown that it peaks before the s&p 500 does, which makes sense due to fundamental factors. Auto's require lots of capital to build, and a lot of raw materials that are subject to inflation. This means late-cycle inflation often hurts the auto sector before it starts to trickle down elsewhere. Additionally, autos are also subject to credit markets, where higher rates = more difficulty financing cars. This causes purchases to drop due to people having less money to throw around and credit being more expensive.
Toyota Motors Short (Sell Setup)Seems like a good sell setup but I would exercise serious caution here and watch price action before I go short. This is a monthly play so a lot of patience is required but the risk/reward is completely worth it.
Could TM revisit previous highsToyota Motor Corp. is making a serious commitment to bringing electrified vehicles into its fleet.
The move goes against the widely held perception that the Japanese automaker was taking a very different path than other global automakers striving to become “Tesla-competitive.”
Toyota will be offering electric versions of every model of its vehicles by 2025, and hitting a target of selling 5.5 million electrified vehicles by 2030.
TM : Descending Triangular Pattern on Charts Dear All , Continuation Patterns are always helpful to identify the trend . In TM , There was Descending Triangular Pattern , While Peak/Bottom is 145.25/103.40$ . On the First Break-Out , It was unable to sustain and came down into the pattern but On 2/3rd of Apex , It gave A Sustainable Break-Out . By Break-Out :
Calculations : According to Pattern - Difference between Peak and Bottom = 145.25-103.40$means 41.85$
By Breaking Out 145.25$ , Targets will be of $
That's Equal to 187.10$
Conclusion : Long TM - Targets :
1st : 123/127$
2nd :130/132$ Stop-Loss : 115.35$
3rd : 144/146$
By Breaking Out 3rd Target , TM will move to 187.10$ in Medium Term .
With Regards ,
KBMJ
Research Analyst (INDIAN)
TM Testing LT Trendline. In a wedge. If breaks TL, MM=190+Only simple T/A. Measured Move=190. Sloping upward 200. Conditions are right in the market.
Buy when outbreak down-trend top lineOne's the price over the down-trend top line, it's a best timing to buy.
TM: Toyota is very cheap hereGreat low risk buy setup in $TM. You can average in during 3-5 days here, risking 3 avg ranges down. I think $TM has a lot of upside, and the Range Expansion day out of support kicks off a nice uptrend signal here too. Both valuation and technicals align, giving us a great low risk trade.
Best of luck if taking it,
Cheers,
Ivan Labrie.
