Ford Motor Credit score Firm (F) – Why Ford Inventory Appears to be like Set To Bounce Regardless of Huge Automobile Recall

Ford Motor Co F gapped down 0.85% on Thursday to begin the buying and selling day and slid a further 2.12% off the open earlier than operating into a gaggle of patrons who pushed the inventory as much as work towards printing a dragonfly doji candlestick on the day by day chart.

The inventory seemed to be ignoring information that Ford issued a recall of just about 200,000 2015-2017 Ford Expeditions and Lincoln Navigators over a hearth danger. 

A dragonfly doji candlestick types when a purple or inexperienced candlestick prints with an extended decrease wick and a small to nearly non-exist physique, which signifies the opening and shutting value are near flat.

A dragonfly doji candlestick, when present in a downtrend, can point out a reversal to the upside is on the horizon. It’s a lagging indicator, since the following candle on the timeframe being studied should print earlier than the sample will be validated.

A dragonfly doji candlestick doesn’t essentially imply a brand new uptrend will happen, solely {that a} bounce greater is probably going imminent.

Candlestick patterns can be utilized to point the longer term value course of a inventory. Candlestick patterns are particularly helpful for technical merchants when they’re mixed with different indicators comparable to bigger patterns, buying and selling quantity, relative energy index (RSI) and divergences between RSI and value motion.

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The Ford Chart: Ford started buying and selling in a downtrend on Aug. 16, when the inventory tried to regain the 200-day easy shifting common (SMA) on the day by day chart however failed.

The newest decrease excessive throughout the pattern was fashioned on Aug. 26 at $16.09 and the newest confirmed decrease low was printed on the $14.91 mark on Aug. 12.

  • Thursday’s candlestick might counsel a bounce will happen on Friday, however the probably state of affairs is that the inventory will prime out under the $16 mark. If the inventory is ready to cost above that degree, nonetheless, or bounce up and retrace solely to make the next low above $14.78, the downtrend will probably be negated.
  • Bulls need to see Ford regain the eight-day exponential shifting common (EMA) as help, which can keep away from the eight-day EMA crossing under the 21-day, which might be bearish. If Ford continues to pattern decrease, the 50-day SMA will probably be an essential space to carry above.
  • Ford has resistance above at $15.51 and $16.45 and help under at $14.34 and $12.79.

See Additionally: Ford Motor Credit score Firm (F) – Here is How A lot Princess Diana’s 1985 Ford Escort Offered For At Public sale

Picture by way of Shutterstock. 

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