Honda stock chart shows weekly trading range, testing support
On a fundamental scale, Honda Motor Company (ADR: HMC) has the usual set of fine products being delivered to the world market. On the stock performance side, though, things have been a bit more volatile and driven by the Yen’s relation to the dollar, not to mention by the general market’s price actions.
As you know, Honda Motor Company reported last Tuesday that U.S. April sales fell 2.2% to 122,012 vehicles from 124,799 a year ago. For the record, U.S. sales of the best-selling Accord in April rose about 26% to 35,385 vehicles from a year ago.
Now look at the weekly chart for HMC. Looks a lot like of other stock patterns to me. There is a major low in the fall of 2011, followed by a peak in March that has since faltered. Check out a Toyota chart, for example, and it looks similar; just different price levels.
In particular, Honda stock’s support and resistance levels are as relevant as any other stock, because these turning points define where a changing of the guard from bull to bear and bear to bull occurred. And since market history has the proclivity for repeating itself, chances are past support levels and resistance levels will likely be challenged. Right now, HMC is about to challenge the lower 32.65 level, a past high that was broken. Honda closed Friday at 34.30.
Just be apprised that an upper resistance level when broken becomes future support. Likewise, when lower support is broken it becomes future resistance. And that’s how the game is played as traders watch these levels like a soaring hawk circle the air for prey.