Today the Obama administration announced plans to impose steep additional duties on tire imports from China. While economically some may appose of such actions, this is much welcomed news to domestic tire manufacturers.
Although the tire sector hasn’t necessarily been going through a boom as of late, many of the companies have been rising over 50% from their recent bottoms. Much in part to the cash for clunkers program.
All this being said, it may be time to pick up couple quick points. For this particualr article we will be looking at Goodyear Tires (GT); however, also check out Cooper Tires (CTB).
From the chart above, you can see a nice wedge pattern. Both the MACD and RSI look poised for the stock to head higher, now all we need to do is wait for a break out or bounce. Obviously a breakout above $18.70 with a price target of roughly $22. On the other hand, if we get rejected by the resistance, then look out for potential bounce or break below the support. Learn more about these technical analysis terms and strategies.
See what the triangles are saying about the stocks.