The major indexes continue to move higher with the S&P 500 SPDRS (NYSE:SPY) ETF recently making new 52-week highs. Over the last month, the Consumer Goods sector has been one of the top performing groups, and a handful of those large capitalization Consumer Goods stocks that are putting up big numbers are in the auto space. These stocks have been leading the market higher recently and remain in strong up trends. The question is, can it last?
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Delphi Automotive (NYSE:DLPH) has only been listed for a few months, but have performed very well. So far this year the auto parts company is up 43.35% to $31.88 from $22.24. The trend has been steadily higher, but has accelerated to the upside in 2012. Drawing a trendline from the start of 2012 shows the stock been moving higher in a fairly orderly fashion. Stops on long positions can be placed below the trendline that currently intersects at $30. A drop below indicates a further pullback although primary support is not too far away at $28.75. If $28.75 is penetrated, the stock could see a move down toward the longer-term trendline, currently near $25. At this time though the trend remains higher, and is crawling higher along the trendline. The next target to the upside is $35. (For related reading, see The Utility Of Trendlines.)... read more.
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