One thing can be said of Honda: It is a well-run organization. Increasing market share and profit every quarter while whittling away at debt and breaking ground on no less than three new projects (a factory in Indiana, an aeroplane business internationally and the development of new alternative-energy systems), there seems to be little in the way of a continued uptrend in the long- and very-long-term.
Expect to see Honda take more market share from the former Big 3 of U.S. automakers, and a head-on competition with Toyota and other international manufacturers. As of this writing, support seems to be around $32, with short-term resistance kicking in at $34. That said, Honda has a tried-and-true history of triple-testing resistance ceilings before passing over them, and dips in Honda stock can be easily attributed to the quick way in which the company spends its gains on improvements and research instead of Ford-like hoarding.
Although Honda seems to be coming off of a bull run that began in July, the stock is still trading a bit above its 13-day EMA. After dipping a bit through September, it appears that Honda may be ready to rev up a new bull run beginning in the first weeks of October. Keep your eyes on HMC - it's going places.
$34.49 (10/10/06)
