HOT TOPICS LIST
- MACD
- Fibonacci
- RSI
- Gann
- ADXR
- Stochastics
- Volume
- Triangles
- Futures
- Cycles
- Volatility
- ZIGZAG
- MESA
- Retracement
- Aroon
INDICATORS LIST
LIST OF TOPICS
PRINT THIS ARTICLE
by Kevin Hopson
Analysts and investors have been betting against Ford Motor Co. in recent months but don't let the negative sentiment fool you.
Position: Accumulate
Kevin Hopson
Kevin has been a technical analyst for roughly 10 years now. Previously, Kevin owned his own business and acted as a registered investment advisor, specializing in energy. He was also a freelance oil analyst for Orient Trading Co., a commodity futures trading firm in Japan. Kevin is currently a freelance writer.
PRINT THIS ARTICLE
TECHNICAL ANALYSIS
A Developing Bottom For Ford Motor Co.?
03/05/04 01:28:40 PMby Kevin Hopson
Analysts and investors have been betting against Ford Motor Co. in recent months but don't let the negative sentiment fool you.
Position: Accumulate
| Ford Motor Co. (F) has been in a short-term downtrend since early January, when the stock proceeded to put in a double top just above the $17.00 level. However, there are signs of a forthcoming bottom in the stock, as bullish divergences on the chart and continued pessimism towards the company are currently supporting this theory. |
| Looking at the six-month chart of Ford, you will notice that the relative strength index (RSI) and moving average convergence/divergence (MACD) have been moving higher even though the stock recently put in a lower low. Additionally, money flow has turned positive and the 61.8 percent retracement ($13.06) from the Oct. '02 to Dec. '02 rally is coming into play at slightly lower levels. As a result, this retracement level could act as the ultimate bouncing point in the near-term. |
|
| Graphic provided by: Stockcharts.com. |
| |
| If you turn your attention to market sentiment, you will see that investors are extremely pessimistic towards the company. Only three of the 16 covering analysts currently have a buy rating on the stock, while short interest (as of Feb. 9) sits at 78.1M shares - or nearly 6.0x normal daily volume. Additionally, the stock's put/call open interest ratio has risen to 1.29 from 0.81 over the last month and a half. This means that investors have been buying more puts than calls during the stock's recent downturn -- usually a sign of a forthcoming bottom. As a result, I would look to accumulate shares of Ford Motor Co. in the near-term. Given the company's solid dividend yield of nearly 3 percent, traders can afford to be more patient with this one. |
Kevin has been a technical analyst for roughly 10 years now. Previously, Kevin owned his own business and acted as a registered investment advisor, specializing in energy. He was also a freelance oil analyst for Orient Trading Co., a commodity futures trading firm in Japan. Kevin is currently a freelance writer.
| Glen Allen, VA | |
| E-mail address: | hopson_1@yahoo.com |
Click here for more information about our publications!
Comments
Date: 03/05/04Rank: 5Comment:
Date: 03/09/04Rank: 4Comment:
|
Request Information From Our Sponsors
- StockCharts.com, Inc.
- Candle Patterns
- Candlestick Charting Explained
- Intermarket Technical Analysis
- John Murphy on Chart Analysis
- John Murphy's Chart Pattern Recognition
- John Murphy's Market Message
- MurphyExplainsMarketAnalysis-Intermarket Analysis
- MurphyExplainsMarketAnalysis-Visual Analysis
- StockCharts.com
- Technical Analysis of the Financial Markets
- The Visual Investor
- VectorVest, Inc.
- Executive Premier Workshop
- One-Day Options Course
- OptionsPro
- Retirement Income Workshop
- Sure-Fire Trading Systems (VectorVest, Inc.)
- Trading as a Business Workshop
- VectorVest 7 EOD
- VectorVest 7 RealTime/IntraDay
- VectorVest AutoTester
- VectorVest Educational Services
- VectorVest OnLine
- VectorVest Options Analyzer
- VectorVest ProGraphics v6.0
- VectorVest ProTrader 7
- VectorVest RealTime Derby Tool
- VectorVest Simulator
- VectorVest Variator
- VectorVest Watchdog