TM, Toyota (ADR’s)

TM march 17 2015

For at least the length of this chart Toyota has performed exceptionally well. The Corolla is one of the most durable and uncomplicated vehicles that you can find. In the last 10+ years they have received an enormous boost from China which is now ’s largest car market. As always for 1000 years nothing happens and then in a very short time period 1/4 of the population makes the transition from bicycle to Lexus and there is no end in sight (except if and when congestion rekindles the popularity of the bike).

Looking at this chart what strikes me most is the consistency or persistency of this stock which has adhered to the channel , between the black arrows, for almost the entire time. Only seven years out of 36 does the stock venture above the channel and, equally interestingly, never below it! The count that we show here has the top in 06/07, followed by an A down and  B up. However the B is not very clearly a three wave affaire , in fact one could argue that there are 5-waves. That really doesn’t matter as all it does is put the top right at the end. Double-topping – where we are now – is then probable going to give way to a new high at around $150+. After that it should go to the lower channel line at about $70 by that time or even below that. A sell now and a short at $150+.