Foreign Auto Bar Bell Approach:
When comparing the two Japanese auto giants there really is not one. We touched on this yesterday in our Consumer Note and this name is sitting just 1% off most recent 52-week highs, while HMC is now 13% off its annual peak. The daily chart of Toyota below speaks for itself, but it is a good sign that its WEEKLY chart is setting up too with a long cup with handle base (195.75 pivot) in a pattern now 2 years in duration. When one compares that to the WEEKLY chart of HMC, it is easy to spot where the troubles began with the bearish evening star pattern completed the week ending 9/29 that slumped 4.5% (notice the gravestone doji candle the week immediately prior). Give it credit as it looks for a 4-week win streak this Friday and could be ready to record a bullish MACD WEEKLY crossover which it has not done since November 2022. Both of these names can be considered among the better of the automobile plays and each pays a dividend yield in the 3% range.
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Originally Posted January 10, 2024
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