Benzinga
Published Aug 11, 2022 16:38
Updated Aug 11, 2022 17:10
Is Ford Headed For A Gap FIll? Here's Why The Stock Could Charge Toward $20
Ford Motor Co (NYSE: NYSE:F) shares are trading higher Thursday after a bullish day in the general markets on Wednesday helped the stock close up over 2%.
The legacy-turning-electric vehicle manufacturer has spent the last five trading days consolidating after a massive six-day post earnings ramp saw Ford soar 26% between July 27 and Aug. 3.
The massive surge coincided with the break up from a bull flag pattern on the daily chart, which Benzinga pointed out just prior to the company’s second-quarter earnings print.
It now appears Ford may be completing a second consecutive flag within a bull flag pattern.
The bull flag pattern is created with a sharp rise higher forming the pole, which is then followed by a consolidation pattern that brings the stock lower between a channel with parallel lines or into a tightening triangle pattern.
For bearish traders, the "trend is your friend" (until it's not) and the stock may continue downward within the following channel for a short period of time. Aggressive traders may decide to short the stock at the upper trendline and exit the trade at the lower trendline.
The Ford Chart: Ford appears to be printing another bull flag, with the pole formed between July 27 and Aug. 3 and the flag forming over the days that have followed. If the pattern is recognized, the measured move suggests Ford could surge toward the $20 level.
Photo via Shutterstock.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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