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.

If you liked this article you might like

Novice Trade: Goodyear Tire & Rubber

Novice Trade: Goodyear Tire & Rubber

What's Behind the Hound of Hades' Stock Market Rampage

What's Behind the Hound of Hades' Stock Market Rampage

It's Time to Go Off the Rails on Campbell Soup

It's Time to Go Off the Rails on Campbell Soup

Intermediate Trade: Goodyear Tire & Rubber

Intermediate Trade: Goodyear Tire & Rubber

Intermediate Trade: Goodyear Tire

Intermediate Trade: Goodyear Tire