Ford has had a great run off the bottom in first quarter of 2009. To be exact the stock rallied from $1.5 at the lows to $19 in January of this year. Since the highs Ford pulled back and found solid support at the 200 day moving averagee (red line).
More recently Ford broke a downward trend (dottted off-pink line) and has been roughly moving sidways since. Trends most often don't change in a V-shaped fashion (most recent market snap-back an exception). Trends change by consolidating some (read sideways action) first, then making an attempt at going in the opposite direction of the previous trend.
Such is the case with Ford. Since broke up and throught the dotted pink line it has moved sideways for a few days and now looks poised to move higher. While I've been adding to my long position little by little, I see a good entry point above the horizontal resistance (blue dotted line) and 50 day moving average (yellow line).
Looking at multiple time-horizons helps us see the bigger picture more objectively.
If this type of trading and investing style is appealing to you I would be happy to welcome you as a member at WWW.THESTEADYTRADER.COM
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