Yesterday, I published an article when Ford Motor Company (NYSE:F) coming off new 52 week highs. The stock was doing well but pulling back creating a topping tail. I pointed out many factors that signaled a possible top and a solid decline on the horizon. Sure enough, the stock took a major hit yesterday and has continued to decline today.
As Ford Motor Company approaches the $13.00 even number today, it will find a little support for a possible short term bounce. This bounce could last for a a few days as it pauses. However, after that, it is likely it continues its downward momentum after the short bounce. Ultimately, in my opinion, Ford Motor Company will sell to the $12.20.
The call was nailed due to pure technicals, nothing else. Understanding price, pattern and time are the keys to knowing every move in the market or in a stock. How do you learn about this, get education, calls, guidance and more? Join the Research Center at InTheMoneyStocks.
Note: Below is the article written yesterday on Ford Motor Company where I alerted to a top. It is time stamped.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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Ford Motor Company (NYSE:F) Signals Possible Top With Candle Formation.
By Gareth Soloway on March 18th, 2010 1:32pm Eastern Time
Ford Motor Company (NYSE:F) is forming what could be a tell tale sign of a top on the daily chart. The candle formation is known as a possible topping tail. A topping tail occurs when a stock runs up intra day early and then pulls back later in the day. It creates a long tail on the top and a close in the lower 25% of the candle.
In addition, one must analyze the daily chart for an over extended rally. Ford Motor Company clear is extremely extended on the daily chart. When this happens, a technician will look closely for a topping tail or some other reversal signal.
Today, Ford Motor Company has a chance to create that. The stock has soared in recent weeks and this morning was no different. It jumped with a small gap higher and ran to all the way up to $14.54. All of a sudden, it began to reverse. Ford now sits at $14.09 down $0.02 on the day. What a reversal and it looks like this could be the topping tail many are waiting for!
Related Stocks: Toyota Motor Corporation (NYSE:TM)
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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