The stock for Toyota Motors (TM) broke below the key support line of the 200-day moving average today. Since peaking in August, TM has lost 12%. TM now looks poised for a test of the summer’s lows and perhaps even retesting of March price levels.
*Chart created using TeleChart:
TM is a major component of the Nikkei 225, and this index has not quite broken its 200DMA yet. Thus, there is a good chance TM will make a counter-trend bounce before resuming its steady fall. A break in the Japanese yen’s strength could also bring new life to TM, and the Japanese stock market. The yen has trended upward for seven months in a row, especially against the U.S. dollar.
Be careful out there!
Full disclosure: short TM
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