Ford (NYSE:F)Q: Please help me with Ford. his stock is a real head-scratcher for me. I bought it at $6.02. -Thank you very much.
A: As for Ford, a subscriber also asked me about that today. What I told him was that we uptrended it on 3/18 right after it crossed above the 50-day moving average. It has since moved much higher and is also consolidating in the $5-6 range. The $5 level was important support/resistance back in July-October 2008 so keep an eye on that level. As a stock gets too far above the 200-day average there is always some risk for correction. It broke support at the 50-day (5.73) and made a lower high on 7/1 so I am watching for a potential little head & shoulders which may push it slight lower. Simply put, I like it better at $5 than I do at $5.70 from a risk/reward scenario since it was able to bounce off of $5 back on 5/13.