Tuesday, December 10, 2013

F Ford Weekly Chart Bull Flag H&S

Wall Street is enamored with F these days. After all, Ford did not receive a bailout. F was in trouble during 2005-2008 which turned out to be a blessing in disguise. As nearly all other stocks and indexes were drunk with bullish joy moving into the October 2007 top, Ford had already been suffering and was in a 2 or 3 year recovery plan, streamlining the business and righting the ship. The markets crashed in Fall 2008, and F moved lower as well, but Ford was one of the few companies that had their company on a solid footing. nearly all other companies were reckless, like now, thinking that the party will go on forever. So the weakness in Ford during 2005-2008 worked out to their advantage.  They are touted as one of the strong success stories after the crash since they did not need a bailout.

Over the last year, the yellow bull flag pattern is played out; leg one from 8.5 to 14, call it 5.5 points, so after the sideways consolidation flag formed in textbook fashion, leg two starts at 12, which sets a 17.5 target, achieved, and is where price now tops out. The red lines show the negative divergence and overbot conditions that create the top. The indicators are weak and bleak wanting to see lower lows in price moving forward although the money flow wants to see a bounce for a week or three. Ford is now below the 20-week MA at 16.92 which is a bearish signal. Price may want to back kiss this number which may create the last chance to exit. The white H&S targets the 14.0-14.5 zone if 16 fails. There is no reason to own F on the long side anymore. Take the money and run. Price may stumble sideways with some lift for a week or three but use this opportunity to exit. Initial downside targets moving into and through 2014 would be 16 then 14. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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