Toyota ™
Lindsay from Wallstrip presented TM on Tuesday, and focused on the Scion vehicle model, what I personally consider one of the ugliest cars in the world….at least the 2006 xB model.
Admittedly, the 2007 model is an improvement in style…..yet still…..
But who cares what I think anyway? I’m often accused of being a grumpy old man by my daughters, so maybe I’m just out of touch with reality. But interesting questions are prompted by the Wallstrip presentation. Such as is there brand value in the Scion model? Do the customization options provide a ‘cool edge’? Is the affordable price great for the target? Is the limited release quantity of 100,000 vehicles going to prompt an increase in brand value that will extend years into the future and provide more leverage for future brand value? Will the answers to these questions make any difference in the fundamental value of Toyota, and more importantly does it make any difference to the short to medium-term direction of price of the stock? I dunno; perhaps.
What I do know is there are a few technical carrots extended before the eyes of potential buyers ….. like the impulsive price action of late, with price above Fuzzy C support.
Note the conflicting daily TA of bearish head and shoulders (marked red).
AND …….. looking beyond first glance, to a deeper and longer-term level of technical analysis, I see a very high potential that current level buyers may be soon labeled the “asses that ate the carrot”, instead of “horses galloping down the profit trail”.
So there’s not enough TA to tempt me personally as a bull…..but if you are still a short-term bull after my recent posts about a likely impulsive market correction, and looking at TM because of it’s hot trend of late, hitting all-time highs recently, and looking for short-term technicals to enter, then have at it. But I strongly consider you examine the longer-term charts below. If you’re still going to buy this week or next, then I strongly warn you that your stops should be tucked just below the white C, and if not there, definitely below the brown C. Fuzzy Cs are crucial support, and forceful and volatile price action can follow a C break…..especially with a bearish weekly double top.
People bearish on the stock and looking to short it, might be tempted to use a sell stop under the daily C’s with stops above the recent high, to target major support suggested in the below charts. But I’m not seeing outstanding r/r in that play, so TM won’t form part of the technicaltrades.net portfolio any time soon.
This channel must hold:
Next major channel support:
