Honda acts on its car output quicker than originally planned, reducing it by up to 40% from its two Japanese plants.

Honda announced yesterday that it is planning on cutting its car output by up to 40% within its two Japanese plants. From a technical aspect, Honda’s shares are currently trading at $32.94 with an established support base. First level of support sits at $31.24 (lower blue trendline), followed by this is a major support level at $30.43 which is just below the trendline. A break below the major support, could see its shares slide towards the pandemic era where shares were at $27-$28. On the upside, resistance sits at $33.99 and then at $34.84. A break above $34.84 may see the stock hike towards its highs of the year ($37-$38). MACD has turned neutral but RSI suggests a neutral stance as it reads 45. The issues with supply chain and logistics keep adding weight on the stock, hence Honda reducing its production level, is an important factor for investors to keep in mind.