Tuesday, June 23, 2015

Chart analysis of Ford Motor

We discussed last month a possible bearish chart pattern in Ford:

The price target of the 3-month Head & Shoulders Top was met in early June:

So what now? The next chart offers a possible bullish interpretation for Ford:

Remember, this breakout from the channel is only a possibility. Also, channel breakouts are tricky to trade. The stock can decline and stop us out of our position yet stay above the descending upper boundary. When I trade a breakout from a channel, I use a smaller-than-usual position and set a wider stop.

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