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January 12 Chart of the Day - Goodyear Tire and Rubber Company

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Goodyear Tire and Rubber Company (GT) is putting a tech spin onto traditional tires with a new line of "intelligent tires."

To be perfectly honest, the first thing that comes to mind when we think of Goodyear is their blimp!

In an interview with Yahoo Finance reporter Akiko Fujita at CES 2024 covering the tire manufacturer's smart tire technology, Goodyear CEO and President Rich Kramer discussed the company's goals for implementing it for self-driving vehicles and stated "What's happening at the base of the road and the tire, taking all that information and bringing it back to vehicle driving systems to improve the safety and performance of those vehicles," Kramer explains. "Essentially, make them safer and have them perform better on whatever use case they're in."

So we wanted to take a look at the company's stock chart from a price action technical analysis perspective.

On the monthly chart we can see price is in area where it traded way back in the early 1990s.  Currently at $13.26 price is well off its $76.75 all time high set in 1998. By 2003 its price had fallen to a paltry $3.17

All this movement is relevant because price can often have a good memory...

For example, after climbing for over a decade between 2010 and 2020 to the $35 area price fell yet again below $4.

From there it climbed to $24 only before being knocked back down to about $10.

On the weekly chart we can see a wedge forming between a recent up trend and a longer term down trend.

More times than not, price can break aggressively out of a wedge but the biggest unknowns are when and which way.

Regardless of your personal investment/trading style we've identified bi-directional levels of interest from which investors and traders can develop their respective plans.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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