Antonio Arias
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Antonio Arias in Daft Wonderworkers,

TOYOTA IS TOYOTA

Automotive industry occupies a special niche in the world economy. So we would like to research the most interesting, from our point of view, auto-stocks.

So to speak, every trading session begins in Japan and Tokyo Stock Exchange (TSE) plays an important role in the modern market economy. For instance, TSE is the world’s 4th largest and Asia’s largest exchange. Therefore we decided to start our article series dedicated to the automotive industry with Toyota Motors (NYSE:TM).

Chart 1. DailyToyotaMotorsChart

As you can see on this chart, during Summer 2015 there was a down trend and Tianjin Explosion on 13 August 2015 led to the significant fall of stocks from $ 128.00 to $ 105.00 per share (- 18%). According to the technical analysis, this news had formed a hammer pattern. This candelestick pattern is considered as a bullish one during a downtrend.

In October this signal was proved by two moving average (MA) crossover. Moreover, a short-term MA had broken from bottom to top through the long-term MA which confirmed an upward momentum. From the fundamental point of view, this was due to the positive financial results of the company for the six-month period ended 30 September 2015 in comparison to the other automotive companies.

To sum up, in terms of fundamental and technical analyses, Toyota stocks are in consolidation phase and two moving averages forecast a continuing drawdown. We recommend to add these shares into your investment portfolio for beta ratio = 0.6, which indicates good financial strength. A reclaimed auto sales crown and strong views on hybrids market coupled with hard error analysis session give a chance to potential shareholder to be a part of the socio-future oriented company. As for short-term trading it is necessary to control intraday volumes, time&sales and news.