Getting The Jump on Ford's 30% Rally In 10 Weeks
by Mike Paulenoff
August 14, 2022 • 12:27 PM EDT
On May 25, Mike Paulenoff alerted MPTrader members to a preliminary upside reversal signal in F (Ford). The stock at the time was trading at 12.40, up from its then multi-month corrective low at 12.07 established on May 20.
Mike instructed members that only a close below 11.00 would invalidate his preliminary bullish signal.
Then on June 10, with the major equity market indices in the grasp of a three-session plunge of 10% to 12% into what would become significant mid-June major corrective lows, Mike reiterated his bullish analysis about F, writing:
"F (Ford) remains on a Buy Signal generated by its price bottoming behavior since May 20th despite today's 3.9% drubbing in sympathy with the overall market. The 'bottoming behavior' will remain intact and viable unless and until F breaks to new corrective lows beneath 12.07 AND follows through below 11.00 (on a closing basis)."
During 8 of the 13 trading sessions between June 16 and July 6, F pressed to or marginally below 11.00 but never closed beneath Mike's close-only stop of 11.00, and by July 27 was trading at 13.15.
At that point, hours prior to Ford's earnings report, Mike posted another heads-up for MPTrader members, noting that the stock was "poised for upside continuation to challenge 14 -- the down-sloping 100 DMA."
As it turned out, investors and traders reacted positively to the earnings news, propelling F from its gap-up open on July 28 into last Friday's (August 12) high at 16.22, up a full 30% from Mike's initial alert.
F is an example of the risk management discipline Mike applies to the technical work that he communicates constantly to MPTrader members in every one of his intraday updates.
What's ahead for F as well as other auto names like GM and TSLA? Join Mike and MPTrader members for their intraday discussions and idea generation on individual names, ETFs, macro indices, commodities, and Bitcoin.
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Before the opening bell, Mike responded with the following chart-based commentary:
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AAPL has pressed beneath its prior pullback low at 166.
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He updated his downside target to 164.80-162.
