Market to Watch: Auto Sector
The automobile sector broke out of its downward trend this spring, according to Royce Tostrams, technical analyst at Tostrams Groep.
The sector will rise another 25 percent to the levels of mid-2008, Tostrams said.
BMW broke out of its falling trend after reaching a base at the end of 2008 and is now moving higher, Tostrams told "Squawk Box Europe."
"We believe it could move towards levels of 39 (euros)," he said. "BMW is one of my favorites in Europe and it has been added to my portfolio."
"Ford, since March this year, is outperforming the broad market," Tostrams noted. "We could easily go towards levels of 2007/8 around $9.50."
"From present levels, there's another 35 percent to 40 percent upside potential," he added. "For the America portfolios, Ford should be one of your favorites.”
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