AXL: 3 Falling Peaks Aiming to Initiate A Type 2 Return to $1.00AXL, after giving us a decent type 1 reaction of the 0.886 PCZ, has now begun to slow down and has developed a 3 Falling Peaks pattern with a 4th lower peak for good measure, and it now looks to make a type 2 return to the HOP level, which would take it just below $1.00 if it plays out.
Automotive
BMW's Decision to Drop Heated Seats Microtransaction: A PositiveBMW's recent decision to abandon its heated seats microtransaction model comes amidst significant public and media criticism. The move reflects the company's adaptability and responsiveness to customer feedback. While the initial introduction of the subscription-based model for basic features was perceived negatively, BMW's swift response may restore consumer trust. This strategic shift towards focusing on software-based subscription services, like driving and parking assistance, aligns with current market trends and consumer preferences. Investors and traders should monitor BMW's upcoming moves in the subscription space, as it could influence the company's market positioning and stock performance in the near future.
A brutal movement in the price action of FORD
During my thorough analysis of FORD's 4-hour price action, an intriguing revelation emerged: a hidden bullish divergence, a distinct pattern that warrants attention. This intriguing phenomenon is characterized by the following indicator values:
- A price of $11.29 accompanied by a Relative Strength Index (RSI) of 38.96.
- Another price point at $11.99 coupled with an RSI reading of 18.84.
The RSI was more oversold at 11.99 $ then it was at 11.29 $ indicating that this was an overall uptrend and we now that if something is oversold, it should continue up and there you have your confirmation for your uptrend continuation making this a good place to enter.
Also please note that I would usually use the RSI on a 1H time frame to find these divergences, but here we have been able to detect them on a higher time frame such as the 4H which means that this is a more higher and accurate signal compared to the other regular one which makes these a more confident trade!
FORD watching for a reversal from deep oversold LONGFORD on the one hour chart has been trending down with dynamic support from
anchored VWAP lines. However the zero lag MACD is showing some bullish divergence
with upgoing MACD and signal lines in parallel from a cross under the histogram
which converted red to green. There was an associated spike in volume in the range of 3x
the mean. The last earnings report only a few weeks back had a significant beat on the top line.
I will place FORD on my watch list for next week. I likely will take a long trade on
Mondday 8/14 with planned targets on the chart based on VWAP standard deviation line levels.
I am especially interested to see if FORD will go on a bull run and fill the volume void
from 14.25 to 15. If profits are taken off 40%, 40% ane 20% this trade could realize 20%
in profit.
Motus broke above a Triple Bottom and is heading to R130.00 Triple Bottom has formed on Motus after the last few months.
And just recently, the price has broken above the neckline of the pattern,
This is bullish for an investor as there is extensive upside to come, by the looks of things.
7>21 bullish
Price<200MA
RSI>50
Target 1 will be to R130.00. It's quite optimistic, but you saw how quickly the stock fell in a short period. It needs to go back up and rebalance.
ABOUT THE COMPANY
Motus Holdings Limited is a South African company that operates in the automotive sector, dealing in vehicle retail, vehicle services, parts and accessories, car rental, and financial services.
Founding: Motus was established as a division of Imperial Holdings Limited in 1973.
Public Listing: The company was separately listed on the Johannesburg Stock Exchange (JSE) in November 2018 after a demerger from Imperial Holdings.
Global Presence: Motus operates in South Africa, the rest of Africa, the United Kingdom, Australia, and South East Asia.
Business Segments: The company operates through four main segments: Import and Distribution, Retail and Rental, Motor-Related Financial Services, and Aftermarket Parts.
Vehicle Brands: Motus represents a wide range of vehicle brands through its dealership network, including Hyundai, Kia, Renault, Mitsubishi, and many more.
Vehicle Types: The company deals in both new and pre-owned passenger vehicles, commercial vehicles, and heavy equipment.
Services: Motus also provides vehicle-related financial services and products, including vehicle finance, insurance, and warranty products.
Parts and Accessories: Through its Aftermarket Parts segment, Motus sells a wide range of vehicle parts and accessories.
Rental Services: Motus offers vehicle rental services through its car rental business, which operates under several brands including Europcar and Tempest.
Employees: As of 2021, Motus employs approximately 16,300 people across its various operations.
Tesla's net income is down 22.6% YoY, down 31.5% QoQYesterday, after the closing bell, Tesla announced its earnings for the first quarter of 2023. The company reported a net income of 2.539$ billion and total revenue of 23.329$ billion. Net income saw a double-digit decline on a yearly and quarterly basis, while revenue declined only on a quarterly basis. In 1Q23, Tesla produced 440 808 vehicles and delivered 422 875 of them. During the same period, the company rapidly grew its energy storage production capacity at a mega-factory in Lathrop and announced a new mega-factory in Shanghai. In addition to that, Tesla cut its vehicle prices multiple times, intending to attract more buyers and get a competitive edge against its rivals. That proved a good strategy, with Model Y becoming the best-selling vehicle of any kind in Europe during 1Q23. The report also states that energy deployments increased by 360% YoY, and solar deployments rose by 40% YoY. In regard to the future outlook, Tesla plans to grow production as quickly as possible. In line with that, it plans to launch the production of Cybertrack at Gigafactory in Texas and reach a total production of vehicles of 1.8 million by the end of the year.
Net income = 2.539$ billion (-22.6% YoY, -31.5% QoQ)
Total revenue = 23.329$ billion (+24% YoY, -4% QoQ)
Total production = 440 808 (+44.3% YoY, +0.2% QoQ)
Total deliveries = 422 875 (+36.4% YoY, +4.3% QoQ)
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
RIVN - A competitor for Tesla?Rivian Automotive (RIVN) stock has recently hit a new 52-week low due to various factors, making it a highly volatile investment. The company's lower-than-expected production output in 2023, cash burn rate, and intensifying EV truck market competition have contributed to this decline. RIVN's Q1'23 deliveries beat estimates, but its 9.39K quarterly production remains unimpressive compared to the 50K annual guidance for FY2023. Furthermore, the company's cash burn rate is unsustainable, with a reliance on debt and capital raises until it achieves positive cash flow.
Increased competition in the EV truck market is also a concern, with Ford and General Motors reporting success in their respective segments. Rivian's R1T has garnered positive reviews, but its price is significantly higher than competitors' base models. The stock remains suitable for investors with higher risk tolerances and a long-term investing trajectory. Despite recent recovery, RIVN's uncertain outlook combined with the macroeconomic environment makes the stock very unattractive.
From a technical perspective, we may see a move to the upside that reaches the pink area marked on the chart between $17 and $18 but the higher probability move is a continuation to the downside, either from here or from the target area.
We will keep you updated on any changes we see on the chart. In the meantime, please trade with care and stay safe!
TARGET REACHED: Motus hit the expected price at R105.32 From the last update on 23 February, we saw Motus form a Reverse Cup.
The price broke below the brim level and the indicators were all negative.
21>7>200 - Bearish
RSI<50
The price hit the target of R105.32
The trends are all down and bearish, and there is no incentive to buy the low on my charts. I don't believe in BTD (Buy the Dip). I believe in Buy high sell higher. Sell short buy lower.
Simple.
Palladium setting a very big sell signal to $880Descending triangle has formed on the weekly chart for Palladium
Last week, was a breakout to the downside.
200 >21> 7 - Red background
RSI <50 lower highs
Bearish
Target $880
WHY WOULD Palladium go down?
I can't tell you with any certainties why it's coming down but I can think of a few potential factors like:
~ Lower demand for Palladium as an investor point of view
~ There is an increase in the supply of palladium - I assume with all of the automotive catalysts and with the higher confidence in electric vehicles (cough Tesla)
~ Interest rate changes with there talks about inflationary measures and interest rate drops, this can result in a drop in Palladium prices
~ Technological advancements reducing the need for palladium. For example, they may be using alternatives like Rhodium, Iron, PLatinum for catalysts in newer vehicles that contain less palladium.
Tesla Inc. (TSLA) bullish scenario:The technical figure Channel Down can be found in the daily chart in the US company Tesla Inc. (TSLA). Tesla, Inc. is an American multinational automotive and clean energy company. Tesla designs and manufactures electric vehicles (electric cars and trucks), battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla is one of the world's most valuable companies and is, as of 2022, the world's most valuable automaker. The Channel Down broke through the resistance line on 24/01/2023. If the price holds above this level, you can have a possible bullish price movement with a forecast for the next 18 days towards 168.10 USD. Your stop-loss order, according to experts, should be placed at 108.76 USD if you decide to enter this position.
Tesla Inc. said Tuesday it plans to spend $3.6 billion to expand its Sparks, Nev., gigafactory where it currently makes batteries and electric-vehicle parts.
The announcement came a day before the EV maker reports crucial quarterly earnings, and after CEO Elon Musk completed his third day of testimony in a trial over shareholder losses following tweets he made in 2018 about taking Tesla private.
Tesla said the battery facility would have capacity to produce “enough batteries for 2 million light duty vehicles annually.” In early January, Tesla said it delivered about 1.31 million vehicles in 2022. Analysts expect Tesla to increase deliveries to about 1.92 million in 2023.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
Greves Cotton Levels & Strategy for next few daysDear traders, I have identified chart levels based on my analysis, major support & resistance levels. Please note that I am not a SEBI registered member. Information shared by me here for educational purpose only. Please don’t trust me or anyone for trading/investment purpose as it may lead to financial losses. Focus on learning, how to fish, trust on your own trading skills and please do consult your financial advisor before trading.
Company is focusing on accelerating adoption of electric vehicles and transforming last mile mobility with clean transport solutions has strengthened their leadership position in this fast-growing electric auto market. Company posted net profit of 32.3 crore & net loss of Rs 23.3 crore. Stock has beaten 3 year revenue CAGR. Electric mobility segment posted highest ever quarterly profit.
Volkswagen (VOW3.de) bullish scenario:The technical figure Triangle can be found in the daily chart in the German company Volkswagen AG (VOW3.de). Volkswagen AG, known internationally as the Volkswagen Group, is a German multinational automotive manufacturer. The company designs, manufactures and distributes passenger and commercial vehicles, motorcycles, engines and turbomachinery, as well as offering related services, including financing, leasing and fleet management. In 2016, it was the world's largest automaker by sales, and keeping this title in 2017, 2018 and 2019, selling 10.9 million vehicles. It has maintained the largest market share in Europe for over two decades. It ranked seventh in the 2020 Fortune Global 500 list of the world's largest companies. The Triangle broke through the resistance line on 02/11/2022. If the price holds above this level, you can have a possible bullish price movement with a forecast for the next 9 days towards 141.98 EUR. Your stop-loss order, according to experts, should be placed at 125.40 EUR if you decide to enter this position.
VW reported $4.3 billion in third quarter operating profit. Wall Street was looking for $4.5 billion. Shares are down 3.8% in overseas trading.
Financial guidance hasn’t changed, but delivery guidance has. Back in July, Volkswagen believed total deliveries in 2022 would rise 5% to 10% compared with the 2021 total of 8.9 million units. Now the company expects 2022 deliveries to be the same as 2021. Supply chain constraints are to blame.
Despite that headwind VW’s EV business continued to expand in the quarter. Battery electric vehicles amounted to 6.8% of total VW deliveries. Year to date, VW has delivered 366,400 EVs, up from 293,000 delivered in the same period of 2021. China accounted for 112,700 of those 2022 EV deliveries. VW’s Chinese EV sales are up 139% so far in 2022 compared with the same span of 2021.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
Lithia Automotive earnings predictionBullish on LAD earnings tomorrow.
Using data collected from Lithia dealer websites to predict Lithia's unit sales before earnings is released tomorrow.
The white graph is aligned (almost) to each year/quarter.
Q over Q New and Used unit sales have declined due to an industry wide inventory shortage.
With inventory supply for New and Used vehicles starting to rebound, there appears to be a rebound in sales in Q3 for Lithia.
FORD Swing Trade after REVERSAL in JulyNYSE:F
F is trending up while TSLA heads down
US Legislation to support EV purchases with tax credits is helpful
GM's financial troubles are helpful.
Chart shows upgoing BB/EMA channels
and mid-range RSI with recent K/D crossover.
Both suggest a potential swing entry. Depend on unforeseen
changes in the automotive market or the market at large
and a recession versus continued uncertainty, F could
the uptrend for several months also made for the
opportunity to trade call options.
Trade often. Trade well !
RIVIAN About to break its 3 month Channel upwardsBack in May we called for a short-term buy on Rivian (RIVN) but warned investors not to get overexcited:
This time however we find quite a few reasons to be excited as following the break above its Falling Wedge, the stock formed a Channel Up that is about to break upwards on today's strong rise. Within this Channel, the price also succeeded in breaking above both the 1D MA50 (blue trend-line) and the 1D MA100 (green trend-line) and in fact a Bullish Cross between the two is emerging.
The 1W RSI has been steadily rising from its previous oversold state and is now above the 40.00 mark, so if the price breaks above the Channel Up, we expect RIVN to aim for the 56.90 March 30 High, which is the current Resistance. A break above that level, which happens to be on the 0.236 Fibonacci retracement level form the market Top, would constitute a long-term trend shift to bullish.
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TSLA LongIn Q1 2022, Tesla Outsold All Luxury and Premium Car Brands In The U.S. and gained 8.6 percent of the total market share of luxury automotive sales. Tesla is showing no signs of slow down. We are now currently at a 1 hour supply zone level and I'm looking for a continuation to the upside because break of previous structure to the upside was broken at 790.00 area. I'm looking for a projection to 1002.00 area first TP. We will react to whatever the market shows us and trade accordingly.
NIFTY AUTO Trend AnalysisWorst scenario for those who are bullish thinking of potential Cup with Handle pattern formation on a broader outlook or reverse Head & Shoulder pattern on a narrower outlook.
If you look carefully, you can see the descending broadening wedge clearly as highlighted in my chart.
You can zoom out to see the broader view of my chart with all the drawings.
Technically this chart looks almost similar to the Ashok Leyland chart I have posted earlier this month.
TDI is at upper band with NIFTY AUTO nearing the resistance zone in confluence with the edge of pitchfork and upper edge of the descending broadening wedge highlighted.
Moreover a strong hidden bearish divergence in MACD histogram is observed on weekly timeframe. (Not applied here because chart is on daily timeframe).
Expecting a fall of approximately 30-33% towards 7700-8000 level, which is next possible support zone lying near golden Fib level.
The fundamental attributes of major auto companies are not looking good specially with the declining OPM% (At lowest levels).
It's better to avoid FOMO in auto sector stocks because of all good news and invest after this big correction or else keep averaging.
Do your own due diligence before taking any action.
Peace!!
5/25/22 ANAuto Nation ( NYSE:AN )
Sector: Retail Trade (Specialty Stores)
Market Capitalization: $6.427B
Current Price: $114.84
Breakout price: $118.10
Buy Zone (Top/Bottom Range): $109.60-$96.90
Price Target: $142.80-$144.00
Estimated Duration to Target: 399-407d
Contract of Interest: $AN 1/20/23 110cc
Trade price as of publish date: $20.10/contract
5/25/22 ORLYOReilly Automotive ( NASDAQ:ORLY )
Sector: Retail Trade (Specialty Stores)
Market Capitalization: $39.973B
Current Price: $615.79
Breakout price: $621.50
Buy Zone (Top/Bottom Range): $609.20-$564.80
Price Target: $782.00-$788.00
Estimated Duration to Target: 406-418d
Contract of Interest: $ORLY 11/18/22 630c
Trade price as of publish date: $49.95/contract