Ford on the Move
by Mike Paulenoff, www.MPTrader.com
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Today's very postive earnings and revenue news on Ford (NYSE: F) goosed the stock from around 7.00 to as high at 7.84 so far (+12 prior to the pullback to 7.57. Without diminishing either the report or the upside reaction, let's notice that today's upmove has NOT hurdled important resistance at the prior rally peak of 7.98 (10/21 high, at least not yet. Today's high places another coordinate along the resistance line from the August high, imbuing it with more power and significance. This has a double meaning: 1) if and when the 7.84-7.98 resistance area IS hurdled, F should continue sharply higher on its way above 8.86 to 9.50/70. And 2) until the resistance line is hurdled, all of the action since the Aug. high (to present) is carving out a sideways COIL (consolidation) formation that SHOULD, when the coil is complete, resolve in thrust to the upside towards... ...9.50-9.70. That said, within #2), let's understand that F can revisit the low 7.00 to 6.80 area prior to the anticipated upside breakout. Only a violation of Fri.'s low at 6.81 wil invalidate the bullish coil analysis. It is the with the foregoing in mind, tha I watch from the sidelines for a while longer to see how the price action navigates the coil pattern in the hours directly ahead. MJP 11/02/09 11:30 AM ET (7.61)
