Honda Motor stock price bias bearish after safety probe news
Technical Analysis Summary Honda Motor Co. Ltd.: Sell
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Sell | |
| MA(200) | Sell | |
| Fractals | Sell | |
| Parabolic SAR | Sell |
Chart Analysis
The technical analysis of the Honda Motor stock price chart on daily timeframe shows #T-7267, D1 is retreating after breaching below support under the 200-day moving average MA(200) following multiple tests of MA(200). We believe the bearish momentum will continue after the price breaches below the lower bound of the Donchian Channel at 3231.5. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 3286. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic indicator signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (3286) without reaching the order (3231.5), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of -
US agency has opened a safety probe into Honda vehicles. Honda Motor upgraded its full year profit forecast estimate as it reported higher Q2 profits on Wednesday. Will the Honda Motor stock price continue retreating?
The US National Highway Traffic Safety Administration (NHTSA) is opening new safety probe into 1.72 million Honda vehicles. NHTSA is opening the probe based on reports alleging a loss of power for more than 1.7 million U.S. 2018-2022 model year Honda CR-V and HR-V vehicles. The reports claim some drivers lost power at highway speeds without warning and some reported differential seal leaks resulting in rear differential lock-up as the cause with some rear lock-up causing the driveshaft to fracture while the vehicle was in motion resulting in the vehicle being towed. Honda said it "will cooperate with the NHTSA through the investigation process, and we will continue our own internal review of the available information." News of vehicle safety probe is bearish for a car manufacturer’s stock price.