Toyota (TM) hasn’t had the best of times in the market as of late. In fact, the stock has been on the decline for about three months at this point. Looking at the chart, the knee-jerk reaction may be that this thing is going to continue to fall. However, that may not be the case. The truth is that there are strong arguments on both sides and it really could go either way. Today, we’ll talk about the bullish argument, the bearish argument, and what binary options traders should be watching for when trading Toyota ahead.

The Bullish Argument On Toyota

The bullish argument on Toyota is a relatively good one. Ultimately, it’s centered around 2 primary factors. One is Donald Trump, and the other is technological innovation. Here’s why the bulls believe this stock will fly.

• Donald Trump – Since Donald Trump was elected as the President of the United States, he has had a profound effect on the market. One of the ways he has effected the market has to do with praising companies that invest in the United States. Generally, when he does this, the value of the stock rises. Well, Toyota is one of those companies. The company has invested millions into operations in the United States since President Trump was elected. Of course, Trump has responded with positive statements about the company. While the market hasn’t yet reacted to these statements, the bulls argue that backing by President Trump will help to push the stock upward.
• Technological Innovation – Toyota is known for innovation in the automobile sector, and that innovation isn’t likely to end. In fact, the bulls point to the fact that the company just unveiled a new vehicle this weekend. The vehicle is the FT-4X or Future Toyota – Four – Wheel Drive Crossover. The bulls argue that while the stock is in a slump at the moment, chances are that innovation will drive growth ahead.

The Bearish Argument On Toyota

While the bullish argument on Toyota is a good one, the bears have a good argument as well. Ultimately, the bears believe that Toyota is, and will continue to be, a victim of circumstance. Here’s how the bears see it.

• Geopolitical Conditions – One of the biggest issues that the bears see with regard to Toyota is the geopolitical unrest around the world. In particular, Japan, like many others, is on the verge of a war with North Korea, not to mention the geopolitical unrest in one of Toyota’s largest target markets, the United States. Ultimately, the bears argue that with geopolitical unrest, consumers are less likely to make large purchases like cars, which will drive Toyota and other auto manufacturers down.
• Economic Conditions – Unfortunately, Japan’s economy has been struggling as of late, and while things seem to be getting better, they are far from perfect. Adding economic instability to geopolitical uncertainty shows that Toyota may continue to struggle.

What Binary Options Traders Should Be Watching For Ahead

Moving forward, Toyota is likely to present several profitable opportunities for binary options traders. However, if you want to take advantage of these opportunities, you’ll have to stay on top of the news. In particular, keep a close eye on the geopolitical and economic stage surrounding Japan and the United States. Any news with regard to either of these stories will likely cause movement in the stock.