F closes lower for the 2nd day in a row
Ford Motor Company (F) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, F ended Wednesday at 7.02 edging lower $0.02 (-0.28%), but still slightly outperforming the S&P 500 (-0.46%). Trading $0.07 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (F as at Sep 16, 2020):
Wednesday's trading range has been $0.13 (1.84%), that's below the last trading month's daily average range of $0.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for F. Prices continued to consolidate within a tight trading range between 6.98 and 7.18 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 6.90 (S1). The stock found buyers again today around 6.99 for the third trading day in a row after having found demand at 7.00 in the prior session and at 6.98 two days ago. The last time this happened on September 4th, F gained 1.88% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 7.17 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 6.85 where further sell stops might get triggered. As prices are trading close to September's low at 6.72, downside momentum could speed up should Ford Motor mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Ford Motor. Out of 486 times, F closed lower 51.85% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.26% with an average market move of -0.30%.