Swing Trade: $HMC

The markets are acting really oddly in the last few months, and I cant really put my finger on why. Maybe we’re heading into a declining market (it feels like we’ve been there for a while already), or maybe we’re all just living in a world of fear with an unknown future due to a war with one of the big “almighty” global powers. Not to say that Russia really is that “almighty”, they just feel like the kid that brings a gun into the school (useless and weak, but with a powerful weapon).

Anyway I’ve been watching $HMC for a while now, to the point that I think I even configured an alert on it about 1 year back. It didnt quite hit my alert, but I became aware of it’s decline over the last few months and I think now is a good time for me to buy in. I have therefore purchased $HMC (Honda).

Number of Shares: 7
Share Price: $25.94
Date of Purchase: 2022.04.07
Target price: $30.00 (16%?)
Target turn around: 90 Days (3 months)

So why did I buy in?

Technical reasons, plus I loved my Honda Civic. It was an old beast, but it would run and run, no matter what. The Mrs decided it was time I got rid, and I’ll be honest. I will buy another in the future if given half a chance.

Technical reason 1: The last time Honda was this low, was due to Covid and the time prior to that looks to be 2019 and 2016, which means Honda has been this low a total of 3 times in 6 years. However it has hit $30+ 6 times in the same time period, and the big kicker, it has spent a lot more time above $26 than below it, so I feel like this is a safe bet.

Technical reason 2: The RSI on the one day interval feels very low, currently sitting at 31, whilst I write this up. I would be surprised if this dips much lower. The MACD 12,26 is also in a dip right now, so when this comes to correct itself, I think the price will easily rise to atleast $27, which I’m happy to sit at for a while.

Technical reason 3: $HMC offers a 4% dividend, which helps offset any long term loss due to locked up funds, whilst I wait for this to turn around. If nothing else it’s Honda, they’re not going anywhere and 4% is a good dividend, for all those dividend holders out there.

Final reason. If I was to care about the Yahoo Recommendation Rating. $HMC (honda) is rated as a strong buy. https://uk.finance.yahoo.com/quote/HMC?p=HMC&.tsrc=fin-srch

Summary, there’s a lot of technical reasons for this purchase, but I just like Honda.

Note: Please keep in mind I have no financial training and I really dont have a clue as to what I’m doing. Everything here is just me gambling, if you wish to copy then it is of your own choice and free will. I will not accept responsibility for your actions. Above is simply my personal opinion, your decision to agree or disagree is “your opinion”.