Stock of the day: Ford

We start the new week off with a very promising buy setup on the Ford Motor Company, which is in line with the general sentiment on the market.

Ford was on the rise since the beginning of July, but since mid- August, it’s been experiencing a bearish correction. The correction started when the price met a 38,2% Fibonacci (orange), which was in line with an important S/R levels from March and April. As often happens, contact with 38,2% stops the recent movement, and it was no different here.

A bearish correction on Ford was shaped like a wedge and in theory was promoting a breakout to the upside. That did happen on Thursday, which gave us a proper buy signal. For now, the target lays on the 38,2% Fibonacci and chances that we’ll get there are quite high. In case of a breakout, a buy signal will be extended to the long-term, with a possible target on 50% or maybe even 61.8% Fibonacci.