Taking a Small Position in F …

Buying a long stock position an auto maker right now doesn’t seem to make much sense at first blush … however, I can’t help myself but starting to like the longer-term set-up of Ford here now. I bought a 1,000 shares so that it stays on my radar going forward. Here are the charts …

Ford – Monthly Chart

December was a large and rather nasty looking red candle for Ford on the monthly chart … the three subsequent monthly candles are all inside candles and to me we could have made a longer-term floor to trade against with that December 2018 low. Don’t get me wrong, the chart is not screaming a longer-term bullish move, but I am always on the look-out for stocks that may have been washed-out on the bigger time frames.

Ford – Weekly Chart

The weekly chart for Ford is actually showing a nice pennant/triangle formation. Generally, these type of price patterns are just consolidations that resolve themselves in the direction of the bigger trend that existed going into the consolidation phase – that implies another move lower in Ford. That could happen, but if it did, I think that could actually be the final thrust lower on the monthly/weekly charts for some time to come.

Ford – Daily Chart

So if price is going to break-out of that weekly consolidation pattern, we should be able to see the signs of that move here on the daily chart first. To me, the daily chart is more bullish looking than it is bearish looking.

Bottom-line … while Ford may not be finished with its move lower on the monthly/weekly charts, it looks to me we are near if not already there. I started a small position to keep a closer eye on this one going forward.

Cheers … Leaf_West