F runs into sellers around 8.95 for the third day in a row
Ford Motor Company (F) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, F finished the week -5.26% lower at 8.64 after losing $0.17 (-1.93%) today, strongly underperforming the S&P 500 (1.42%). Today's close at 8.64 marks the lowest recorded closing price since November 13, 2009. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 8.76, the market confirmed its breakout through the previous session low after trading up to $0.21 below it intraday.
Daily Candlestick Chart (F as at Oct 12, 2018):
Friday's trading range has been $0.40 (4.47%), that's far above the last trading month's daily average range of $0.20. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for F.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
The share ran into sellers again today around 8.95 for the third trading day in a row after having found sellers at 8.99 in the prior session and at 8.98 two days ago. The last time this happened on September 6th, F lost -1.70% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Ford Motor. Out of 42 times, F closed higher 61.90% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 66.67% with an average market move of 9.02%.