Ford has had a hell of a run recently. Just a short while ago in mid December it was
gesting $11 and now the stock is over $13. Look back into late October and the
stock was just $10. So given the 20% gain over the past 2 weeks and 30% gain
over the past 2 months, I view todays near doji as a blow off top.
Longs will be looking to lock in those tasty profits and I
believe shorts will be all over the name on a high volume close below $13. If
that occurs, look for a 38% - 50% retracement towards the $12 area where buyers
will likely defend the name.
The stock has been in a bull market since the July/Aug lows
so a short is definitely countertrend and not for the faint of heart. Given the
recent strength, most people would be looking to enter from the long side so be
nimble on a cover and use stops above according to your risk tolerance.
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