Ford Motor Company (NYSE:F) Signals Possible Top With Candle Formation. (NYSE:TM)

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