Toyota daily stock chart for 2012-0207 showing support-resistance levels

Toyota stock dynamics confirm optimism for remaining fiscal year

Revising upward its full-year earnings target, Toyota Motor Corp. (ADR: TM) demonstrated unexpected optimism about the remainder of the fiscal year; and the market’s reaction tends to agree.

Despite a slip in profits, Toyota Motor Corp. (ADR: TM) gapped upward in New York trading this morning in direct response to the positive, forward-looking statements. The stock opened at 79.48, up from its Monday close of 77.71.

Despite the yen's strength lately which is severely pressuring exports from Japan, and a slow production recovery from severe flooding in Thailand, plus the earthquake and tsunami in Japan, Toyota Motor Corp. (ADR: TM) raised its net profit outlook to Y200 billion from Y180 billion.

For the record, not all is well with the numbers in comparison to the old days, though. That net profit outlook is still 51% lower than the year before all the natural disasters, but the trend in the stock proves traders see a positive future.

Last time I wrote, Toyota Motors (ADR: TM) stock had just broken above a major down-trend line, and the company had just ended its great showing at the NAIAS 2012 in Detroit.

Putting this into perspective, though, most auto sectors stocks seemed to show the same wedge or overhead resistance pattern being broken. Important for Toyota stock traders, was that price dynamics, not only confirmed the breakout to the upside, but that the upward move was sufficient to say the bottom was in.

Toyota Stock Chart

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