In this version the target is within the previous swing low. R:R is compromised but completion chance is higher. If entry is activated, use the Ladder to trail stop loss.
Goodyear looks a lot like Alaskan Airlines (posted by Ivan Labrie, link down below). I think this potential long is worthy of .5% risk until we see 5 days with no new low/additional convincing action that will allow us to add/trail stops.
Entry: Market
Target: 31.18
Stop: 26.82
Putting this on watch for the next month. Nice earnings run, looking for a orderly pullback to support or DMA with low volume. Also looking for Stochastic to work off its overbought level. Stock is way to extended and due a pullback or consolidation phase.
- Auto and Tires are under-performing the S&P
- GT has formed a down trend
- Short on a break below 24 along with a bearish market condition (reversion to the down trend )
Within the weak Tires sub industry, Goodyear has been losing upside momentum and is starting to underperform the S&P since May 2014.
Technical Analysis:
- Bearish Divergence from May to now
- Price has been holding bellow the 20MA on the weekly chart with a mean rejection at the beginning of Sep
- Downtrend on the relative performance chart with the S&P
Initial...
