An auto parts stock bottomed in May and is set to keep rallying, according to the charts
Frank Cappelleri of CappThesis breaks down the technicals on this auto parts name.
TL;DR
- GPC has formed a bullish cup-and-handle pattern, indicating a potential breakout.
- The stock has outperformed its main competitors (ORLY, AZO, AAP) over the last quarter.
- GPC is showing relative strength compared to the Consumer Discretionary ETF (XLY).
- Historically, GPC has seen significant multi-year advances after major drawdowns.
- The current rally suggests potential for considerable further gains.