Stock of the day: Ford

In today’s stock of the day, we have an instrument which didn’t wait for the Q2 earnings to come out to trigger a proper buy signal – that instrument is Ford.

Ford will publish its results tomorrow but its buy signal was created at the beginning of the last week. Why?

First of all, we have an inverse head and shoulders pattern (yellow) present on the long-term lows. The pattern is up and running, as the price managed to break its neckline (red). Up and running means that, in theory, it’s already giving us a buy signal. In addition to the neckline, Ford broke two crucial resistances. The first one was the long-term down trendline (black), which was connecting lower tops since the beginning of February. The second resistance was the horizontal line around 12.1 USD (orange).

As you can see, Ford did well by escaping the pit. The price being above a major resistance means that we can catch our breath now and we’ll still have a lot of space for a further rise. Our view on Ford is definitely positive.