Wednesday, February 24, 2010

F macd bull signal

F(ord) is showing a macd bull signal and is trading 1.9% above yestreday's close, at $11.82.

The rise came on news of planned job cuts. The money flow index is trading in the mid-range, neither overbought nor oversold.

F has been trading sideways since it hit a peak of $12.14 on Jan. 11 and has generally stayed in a $12 to $11 range, with a overshoots in both directions.

Looking more broadly, F has been in an uptrend since November, when it  hit a low of $1.01. The sideways movement of the last month can be seen as a correction of the most recent leg in that rise.

I'm interested in F if it can break past the $12.14 level, setting a new high that would confirm resumption of the uptrend. Otherwise, there's far too much congestion for me to be sanguine about entering now.





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If I were seeing a bull signal and the stock were trading at the bottom of its recent range, then I would happily go in with an iron condor or some other sideways strategy.

But since the signal is coming at the high end of the range, I don't see a sideways play as having a high probability of success.

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