Toyota headed to 68

A reader requested a chart for Toyota: Toyota has one ugly chart. Check out the volume!

Toyota is going to hit 68 at the very least, although the fall from 73 to 68 might take longer than the drop from 92 to 73. This drop is clearly a result of the sticky Toyota gas pedals. Personally I think the selling in Toyota is overdone and once Toyota fixes the problem I think this stock is going to climb back into the 80s.

If we break below 68, then Toyota is headed for 56.8. The 68 level should be strong support, you have to look at the chart on a 2 year scale to see the strength of the support at 68. So I would feel comfortable going long Toyota at 68 - but probably not at the first touch at 68. Let it hit 68 and watch for a few days to see what kind of pattern develops.