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
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