Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

F and GM are Looking a Bit Toppy


Purely from a chart perspective, Ford Motor Co. (F) has established three major rally peaks-- in Oct 2013 at 18.02, then in July 2014 at 18.12, and more recently, in March 2015 at 16.74-- the combination of which imbues the medium-term price structure with a toppy (Triple Top?) distribution pattern stretched across nearly two years of price action.

For me, F is at a very dangerous, technical crossroad as it trades just beneath its down-sloping 50-Day EMA (15.85), and its flat 200-Day EMA (15.78), poised to roll over into a another bout of weakness.

If F breaks and sustains beneath the prior low at 15.14, the toppy pattern will become infinitely toppier... ...

Meanwhile, General Motors Company (GM) has a slightly stronger set-up, but here too, the price structure is coming off of a failed effort to retest its Dec 2014 high at 41.85, and has pressed beneath both down-sloping EMAs, heading for a confrontation with its 7-month support line, now at 33.90, which must contain the selling pressure to avert continuation that points to 30.00- 29.00.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!