Hit The Road Jack And Come Back No More
A follow up analysis on Goodyear Tire & Rubber Company (Nasdaq: GT)
Introduction
Last year on August 5th, 95 years from listing on the New York Stock Exchange, I wrote about The Goodyear Tire & Rubber Company (GT), which reported better than expected results in its 2022 Q2 results. You can read the article again in this post, which explains the concept of squaring price and time (where a change in trend may occur).
I have been following Goodyear since August last year and took early positions on the narrative of the transition to Electric Vehicles that can benefit Goodyear in the long run and last year’s improving company fundamentals.
Last year, investing in Goodyear Tire & Rubber (Nasdaq: GT) would have given you a 19% gain. Goodyear is trading at the top of a multi-month $6 trading range.
Recently a clear square out in Price and Time was established on the Lunar Eclipse of May 5th, 2023, which is probably an Elliott Wave (EW) 2 of some primary degree. Note this EW 2 can still be an EW A of 2, so a low below the 2022 low will invalidate this Elliott Wave scenario. The current pattern of a smaller Wave 2 within a larger Wave 3 primary degree may still need to be formed. So, I did not annotate this on the charts.
Goodyear may be trading back in the larger trend channel formed by the dashed-dotted black lines formed by the COVID decline once a smaller EW 2 within a larger EW3 has been formed.
This song from Ray Charles keeps resonating each time I evaluate Goodyear’s charts:
Hit the road Jack and don't you come back
No more, no more, no more, no more
This is every investor’s hope that a stock will rise forever and ever, but we know the rise will not be forever.
A change in trend took place on May 5th with a larger impulsive move in that week, which looks promising for Goodyear. Given the cycles on the chart, what will be the next price and time target? The premium subscribers further from here on our technical and cyclical review update on Goodyear.
Hypothetical or simulated performance based on past cycles has many limitations. Cycles can contract, extend, and invert. Hence, past performance is no guarantee for the future. No advice. Read our disclaimer.