Ford (F) beat earnings estimates this morning as the stock tests an important support area around 6.5-7. After breaking resistance with a big surge in July, the stock returned to broken resistance in September-October. Broken resistance turned into support with three bounces in the 6.5-7 area over the last two months. Ford is once again testing this support zone after a decline last week. The July surge and resistance break set the bullish tone overall. This means the August-September decline is viewed as a pullback and support is expected to hold. A move below 6.50 would negative this theory. The blue trendlines show three fan lines. A break above the third (8) would target a move above the summer high.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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