In this post I'll take a look at some technicals on each of these stocks. I'm taking a little longer term perspective on these, so I'll be using weekly charts. As a little background, I tend to be pretty simplistic with regard to looking at technicals--I'm just not smart enough to put together twenty different charts and indicators, and besides, when I try to do that I lose money faster. Generally for me its one chart, a little price, a little volume, some highs/lows and a trend line or two.
From a technical perspective, to me these stocks do have something in common--the Chairman's bromide, "Range contraction is followed by range expansion."
First, Toyota--again, weekly chart.
courtesy of stockcharts.com
I've noted the trading range for the past 9 months or so between about 74 and 82. That's a pretty tight range. Additionally, you can see the long price by volume bars for that range, meaning a lot of the volume in the stock over the past 4 years has been in that range. I see this as additional "fuel" to accelerate a move outside the range--less supply of stock at prices above 82 or below 74. One other point is that the bottom of this range is at an old high from three years ago, perhaps providing additional support. So from a long term technical standpoint, I'd be interested in buying a breakout above 82 and selling a breakdown below 74. In between, I'd let the shorter term traders take the points.
Next is the Agilent weekly chart.
courtesy of stockcharts.com
Again, a tight trading range between about 20 and 30 for the past 9 months or so, and again, looking at the price by volume bars, a LOT of volume really between about 22 and 28 or so. Purely by the technicals, I'd be more tempted to sell a breakdown in the teens, and buy a breakout above 30.
Gala had an options play on A here.
I'll make at least a brief comment about the fundamentals a little later.
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