Ford Stock Keeps Rolling North In This Key Trend: Here’s How To Trade It

Ford Motor Company F was trading higher on Monday as the stock continued to move north in an uptrend.

An uptrend occurs when a stock consistently makes a series of higher highs and lower lows on the chart.

Higher highs indicate bulls are under control while intermittent higher lows indicate periods of consolidation. Traders can use moving averages to help identify an uptrend with rising moving averages over a lower time frame (such as 8-day or 21-day exponential moving averages) indicating that the security is in a steep short-term uptrend. and rising long-term moving averages (like the 200-day simple moving average) indicating a long-term uptrend.

A stock often signals when the high has been reached by printing a reversal candlestick such as a doji, a bearish candlestick or a hanging candlestick. Similarly, the highest low could be signaled when a doji, morning star or hammer candlestick is printed. Moreover, the highest highs and lows often take place at the resistance and support levels.

In an uptrend, the “trend is your friend” until it isn’t and in an uptrend, there are ways for bull and bear traders to get in on the action:

  • Bullish traders who already hold a position in a stock can be confident that the uptrend will continue unless the stock bottoms out. Traders looking to take a position on a stock in an uptrend can usually find the safest entry on the low.
  • Bearish traders can enter the trade on the high and exit on the pullback. These traders can also enter when the uptrend breaks and the stock hits a low, indicating that a reversal into a downtrend could be in the cards.

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The Ford chart: Ford reversed into an uptrend on April 7, after a 43.72% decline that took the stock from its January 13 high of $25.87 to a low of $14.56. Ford confirmed the uptrend on April 13, when the stock saw a higher low at the $15.22 level.

  • If Ford closes the trading day near its high for the day, the stock will print a bullish engulfing candlestick on the daily chart, which could indicate that higher prices will return on Tuesday. Bullish traders would like to see Ford close the trading day above the most recent high of $15.77, which will cause the stock to print a higher high to confirm that the uptrend is still ongoing.
  • Ford has a gap above its chart between $18.59 and $19.87. The gaps on the graphics fill about 90% of the time, making it likely that Ford will trade in to fill the empty range in the future.
  • Bullish traders will want to see Ford break above the 200-day simple moving average (SMA), which is trending towards the $17 level, in short order as on Friday the 50-day SMA broke below the 200 day, which caused a death cross to occur. If Ford can quickly break above 200 days, it will cause a golden cross, which would give bullish traders more confidence going forward.
  • Ford has upper resistance at $16.45 and $17.02 and lower support at $15.51 and $14.34.

See also: EV Week In Review: Tesla Investors Are Losing Sleep Over Musk’s Divided Attention, Ford F-150 EV Truck Has A Release Date, GM Stitches Battery Material Deal And More

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