Goodyear Hits Multi-Year Highs, Pullback Needed

NEW YORK ( TheStreet) -- Shares of Goodyear Tire & Rubber (GT) have been on a tear since last week's low. With Wednesday's 2.7% gain, the stock has surged over 10% during the last six sessions. Volume during this move has remained well above average, a trend that began in late April.

This powerful rally has driven GT past heavy resistance near the 2014/2015 highs, and yesterday the 2008 peak was cleared. The stock is still below overbought levels, but with a bit more upside, it will likely need a healthy pullback.

The bull run since the beginning of April has left behind multiple layers of support. A key support zone rests just above $29. Goodyear's 2014 high is here as well as the January 2015 spike high. A light-volume pullback and retest of this area would allow patient bulls a low-risk entry opportunity. A close below the current May low near $27.50 would inflict quite a bit of damage to the uptrend.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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