According to a report by the Barron’s financial website, shares of the NASDAQ-listed tire manufacturer, Goodyear Tire & Rubber Company, could surge 25% and hit $40 within a period of 1 year, due to company benefits resulting from cost reduction as well as increasing demand for 17-inch tires.
Goodyear shares closed higher for a third consecutive trading session on Friday. The stock rose 0.91% ($0.29) to $32.18, after going up as high as $32.27 a share, or a level not seen since October 19th ($32.32). In the week ended on December 11th Goodyear shares soared 8.10% compared to a week ago, which marked their strongest weekly performance since the week ended on February 14th. The stock has gained 4.86% so far during the current month, after appreciating 5.72% in November.
The report revealed that demand for 17-inch and larger tires had increased by over 200% since 2010, while expectations pointed to another 200% surge by the year 2020.
In October, the tire manufacturer revised down its 2016 projection in regard to sales and operating income, as production of heavy-duty trucks in the United States shrank.
Despite the fact that the Ohio-based companys stock has tumbled 1.50% so far in 2016, key concerns regarding performance were likely overstated and more than priced in, according to the report.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Goodyear stock are presented as follows:
R1 – $32.25
R2 – $32.32
R3 (Range Resistance – Sell) – $32.39
R4 (Long Breakout) – $32.60
R5 (Breakout Target 1) – $32.85
R6 (Breakout Target 2) – $32.97
S1 – $32.11
S2 – $32.04
S3 (Range Support – Buy) – $31.97
S4 (Short Breakout) – $31.76
S5 (Breakout Target 1) – $31.51
S6 (Breakout Target 2) – $31.39
By using the traditional method of calculation, the weekly levels of importance for The Goodyear Tire & Rubber Company (GT) are presented as follows:
Central Pivot Point – $31.34
R1 – $33.11
R2 – $34.05
R3 – $35.82
R4 – $37.60
S1 – $30.40
S2 – $28.63
S3 – $27.69
S4 – $26.76
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