F - awaiting the next break

Whilst the main equity market continues to broadly climb, Ford (F) closed +0.5% @ $17.44. Near term price action remains largely one of consolidation. A break into the $18s would be extremely bullish for Q4, whilst sub 17.30s would offer at least a minor short term pull back.


F, daily

Summary

Ford is pretty much a good representation of the wider equity market. The past six trading days are a near perfect example of price consolidation above old resistance.

If the main market does break lower on a 'sell the (FOMC) news' event tomorrow, look for Ford to break into the 16s no later than Thursday. The 50 day MA of $16.84 probably will not hold, and that will offer a full $1 lower into the 16.25/00 zone. Even if the market gets upset tomorrow, the 200 day MA - $14.29, looks an extremely long way down.


A break into the 20s?

Regardless, relative to the main market...not least the 'hysteria' stocks (NFLX, FB, AMZN, etc), Ford looks very fairly valued. As many are starting to tout, a break into the 20s would be an extremely bullish sign, not just for Ford, but for the wider US equity market.