Ford is Tough in a Weak Market $F – January 13, 2022


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This is Scott with your Chart of the Day. I want to take a look at Ford ( NYSE: F ) as this stock has been strong, dare I say tough, in a weak market. You can tell that because for pretty much this entire chop zone in the SPY ( NYSEARCA: SPY ), as you see, in and around the 50-day moving average, Ford ( NYSE: F ) has been holding in real tight in and around and, for the most part, above all its key moving averages.

Now, today a bunch of us in the forum were looking at this daily flag forming this nice sideways base of consolidation. And we had traders in our room take this trade to the upside and ride it nicely. It did come back a bit with the market as you can see, it kind of sold off with the rest of the market into the latter part of the session. But I don’t think it’s valid, in my opinion, to be all out of Ford ( NYSE: F ) just yet, especially if you have been riding this stock since down here near the end of December because it is still holding up nicely above all the key moving averages.

Now, if I was in a profitable position with this stock I probably wouldn’t want to see the stock come back and close under that 8-day exponential period moving average because we do have a little bit of a gap here and you could probably make a case that if there is further weakness in the market this stock would probably that little air pocket and come back another 10 percent. Now I, as a swing trader, don’t like to give that much back, especially if I just bought it out of this little base of consolidation. So that is what I would think about Ford ( NYSE: F ) here. It is really strong in this market but I think you just want to make sure it can hold above all these key moving averages.

On the weekly chart, still looking good in a nice weekly uptrend. So if you bought this last week, for example, I think you probably still have a little bit of buffer zone. But again, even on the weekly chart, I would watch these key moving averages. If you get a decisive close below that 8-week exponential period moving average you probably want to get out of the way. But for now, strong in a tough market and definitely worth keeping an eye on.

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