Last October Warren Buffett announced he was going to be investing in the auto space. It garnered some attention and although he did not purchase any publicly held companies, it looks like he is on to something. Stocks like GM and F in the sector are up 20-30% from their October lows and of course it is extremely unlikely he will look to take one of these names out, but it underscores the overall trend in the group. Lets take a look at some other stocks that he could potentially look to make investments in. This should never be a strategy on its own as we just observe price action on the charts.

AN is an attractive name in the industry. The stock is higher by 5% YTD and 23% over the last one year period and higher 13 of the last 17 weeks. The company is very well managed as it has put forth 4 nice earnings moves the last 5 times reporting, advancing 6.4, 6.9, 2.1 and 6.1% on 2/3, 10/28, 4/17 and 1/30/14 (it slumped 8.2% on 7/17). This week it clawed out a mild .6% gain after the prior weeks 6.1% jump. That bullish, tight trade has set up a pennant formation and lets look to enter with a buy stop above the pattern at 64.55.

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