F closes lower for the 2nd day in a row
Ford Motor Company (F) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, F ended the month 12.18% higher at 5.71 after losing $0.14 (-2.39%) today, strongly underperforming the S&P 500 (0.48%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (F as at May 29, 2020):
Friday's trading range has been $0.23 (4.0%), that's slightly below the last trading month's daily average range of $0.23. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently 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.
Unable to break through the key technical resistance level at 5.80 (R1), the share closed below it after spiking up to 5.80 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on May 7th, F actually gained 7.60% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
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 82 times, F closed higher 56.10% 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 51.22% with an average market move of 0.27%.