Shares of tire make Goodyear Tire (NYSE:GT) are burning rubber today as the stock jumps 6% to $25.66 and I haven't found any "news" that would explain today's action. However, this is a stock we mentioned as bullish back in October/November as a potential LEAPS candidate for the longer-term options traders and today's trade at $25 is a longer-term positive as this now gives bulls their first look at a potential bullish target from the vertical count of $34. There's still a lot of work to be done for the longer-term trend to turn bullish, but bulls look to be getting the upper-hand in this stock.
Goodyear Tire (GT) - $1 box
Today's trade at $25 perhaps gives bulls their first idea of potential longer-term bullish. The "buy signal" at $25 gives us a bullish vertical count to $34, but this could grow should the current X column continue to rise (increased demand.)
There were positives building in the relative strength chart in Goodyear Tire (GT) back in October/November and today we see further improvement on that front as the relative strength chart of GT versus the S&P 500 also has generated a buy signal.
Goodyear Tire Relative Strength vs. S&P 500
Not only is the point and figure chart of GT giving a "buy signal" today, but so is the relative strength chart of GT versus the S&P 500 Index. For those investors looking to perhaps try and escape some of the volatility from technology stocks, shares of GT are a little boring, but they might just outperform the market to the upside. That's been the case since October and relative strength bullishness can last for years.
It's interesting to note the loooong column of O's on the far left of the GT relative strength chart. In September of 1999, the RS chart gave a glaring sell signal. It's also interesting to note that the stock was trading in the $50's at that time.