F runs into sellers again around 5.73
Ford Motor Company (F) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, F ended the week 15.31% higher at 5.65 after edging higher $0.02 (0.36%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 5.65 marks the highest recorded closing price since March 11th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (F as at May 22, 2020):
Friday's trading range has been $0.23 (4.05%), that's slightly below the last trading month's daily average range of $0.24. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for F.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns.
Prices are trading close to the key technical resistance level at 5.80 (R1). After having been unable to move above 5.69 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 5.73. The last time this happened on May 15th, F actually gained 8.37% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 5.13.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test April's close-by high at 5.75.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Ford Motor. Out of 80 times, F closed higher 56.25% 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 52.50% with an average market move of 0.27%.