Stock of the day: Ford

The Fed didn’t pivot so the markets did. Yesterday, stocks reversed sharply due to more than expected hawkishness from the Fed. It wasn’t totally expected but a few times we did mention the possibility of a correction on indices as the buying fiesta was stretching quite significantly. For some assets, all time came right on time, as was the case for our hero today – Ford.

Why on time? Well, the price was on a very important resistance – long-term down trendline connecting tops from January, August and September (blue). Instead of a breakout, we received a shooting star candle on a daily chart, which is a very negative sign.

The potential target for this movement is on a key, long-term support on the 11 USD (yellow), which was an important level in April 2021 and the summer of 2022. As long as the price remains below the blue resistance, the sell signal is on and a further slide is much more probable.