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Tuesday, December 22, 2009

Ford (F) Technical View - a Warning Sign?

The graphs of Ford (F) take quite a different shape than that of other major companies. Take a look at the monthly graph:
The highest levels of Ford stock price were achieved during 1999-2000 while for the majority of other stocks the highest levels occured before the last bump at 2007. What I see interesting at this graph is that now the price is on an important level - the one that played resistance twice back at 1988-1990 and again at 2007-2008. There lies the Moving average (100) too.

It's no secret the company has its strong sides like innovative auto lines, good management, nice public reviews, etc. There could be issues with the debt levels but as the Macro conditions improve those should not lead to any significant problems.Still this level of $10-12 could play the role of strong resistance for a while.
The reasons for such thinking might be seen in the next graphs although they might need some time to develope more sure patterns.

On the weekly graph we see the price making new highs while the MACD fails to make such. The Stochastic is in its overbought area but still hasn't turned down. So there might be some more time for goind up but the MACD divergence should be weighting even more. This view is supported by the fact that on the daily graph the situation looks pretty the same.

Having all that said it might not be a bad idea to watch the graphs in the next few days to see if they will develop any clearer patterns.

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