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Bad News From Ford (F), But Technical Set-Up is Worse


After yesterday's close, Ford Motor Co. (F) lowered guidance for 2014-- cut revenues, reduced margins, and quashed expectations for 2015-- which has triggered a quarter-end exodus from the stock that has shaved 12% off of stock price so far.

Let's notice, however, that today's plunge represents the "Right Side" of a major double-top pattern that has been carved out since July 2013.

Should Ford break and sustain beneath 14.40, the double-top pattern will be complete, and will trigger downside potential targets of 12.20/00 and 11.00-10.80.

Let's also notice that the July 2013-Sept 2014 double-top pattern reflects a mirror image of the major double-top pattern carved out between July 2011 and Jan 2013, which met its upside targets over the subsequent 6-8 months.

A similar, but reverse, scenario appears to be unfolding in Ford.

Ford's top pattern should make us question the future health of the global and domestic consumer, and growth prospects at home and abroad.

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