Goodyear Tire & Rubber Co. – GT – close 14.10 change -0.16 stop 13.50

Company Description:
The Goodyear Tire & Rubber Company (Goodyear) is a manufacturer of tires. The Company, along with its United States and international subsidiaries and joint ventures, develops, manufactures, markets and distributes tires for applications. Goodyear also manufactures and markets rubber-related chemicals for various applications. The Company is an operator of commercial truck service and tire retreading centers. In addition, it operates more than 1,500 tire and auto service center outlets where it offers its products for retail sale and provides automotive repair and other services. The Company manufactures its products in 57 manufacturing facilities in 23 countries, including the United States. During the year ended December 31, 2009, Goodyear operated its business through four segments: North American Tire; Europe, Middle East and Africa Tire; Latin American Tire, and Asia Pacific Tire.(source: company press release or website)

Why We Like It:
GT has broken a major downtrend line that began in October. The stock has pulled back from its impressive rally last week and I believe it is poised to move higher as the stock heads into earnings on April 28. There is a key pivot level at $14.00 which is holding, and some resistance at $14.75. If GT can break through $14.75 there is limited resistance up to $15.90. I am viewing the position as a quick trade and plan to be out prior to earnings. Our target is $14.75 with a second target at $15.90. Our stop is below today's low at $13.50. Our time frame is about one week.

Suggested Position: Buy MAY CALL $12.50, current ask $1.85

Annotated Chart:

Entry on April xxth at $ xx.xx
Earnings Date 4/28/10
Average Daily Volume = 4.3 million
Listed on April 19th, 2010