Courtesy of David Ristau at The Oxen Group
Oxen Group’s Pick of the Day: Toyota Motors Corp.
The Oxen Group, for Monday, is excited about the prospects for Toyota Motors Corp. ADR (TM). The company has a number of bullish fundamental and technical indicators that are appearing going into Monday’s trading. For one, GM’s bankruptcy will help the company. In the short term, it appears good for Toyota Motors. However, in the long term, GM will most likely want to try and build smarter, more efficient cars that will challenge some of Toyota’s market, but how that comes about and when is very questionable. For that reason and until GM recovers, Toyota can continue to dominate American, Japanese, and European markets. The market is taking the news well and futures are up significantly in pre-trading already. Further, Toyota Motors announced that their Prius is selling through the roof in Japan, beating their expectations. This news is especially bullish considering the financial times for Japan, which may lend a hand to the increased demand. Either way, it is good news for Japan, which sent TM shares up in the Japanese market. Technically, the stock has seen upward momentum over the past week, but the stock still has a lot of room to go on slow stochastics and is not close to its upper bollinger band. This means that the stock should see continuous, sustained growth and there are still many buyers on the sidelines.
Buy Toyota to welcome in a new auto era:
Entry: Recommend buying within first 10-25 minutes after slight pullback.
Exit: We recommend exiting after a 2-4% increase.
Upper Resistance: 85.50 – 86.00.
