GT Goodyear Daily Chart Downward Channel Gaps

GT Goodyear daily chart shows the May top where the rising wedge, overbot conditions and negative divergence (red lines) created the spank down. Trend is lower lows and lower highs for the last month as the channel (white linies) shows. No gaps to fill above but many to fill underneath. The white lines for the indicators are agreeable to lower prices although the stochastics is looking for a bounce.

Since the all important 50 MA at 16.42 was broken, a back kiss back up to test this rupture is in order. Watch to see if the 20 MA crosses down thru the 50 MA to indicate further bearishness ahead. The April rally may be due to the JOYG positive news flow about the need for mining and earth moving machinery. Those machines have large tires. That is why rubber is a great economic indicator.

But, further on with this thinking, as the chart above shows, a sideways to sideways down posture is on tap to target the 15.5 to 16.2 area now. Thus, this rubber chart, a proxy for the economy, was happy thru April but from May on looks shaky, and hints that the JOYG positive news now should not be banked on for the future. Additionally, CAT, another huge user of rubber for its machinery, did not share the enthusiasm that JOYG has shown the last few days.

Projection for GT is sideways to sideways down moving forward. The 15.5 gap and horizontal support area is very important, and the test there will tell a lot about GT, rubber and the economy and markets in general. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.