Important: Ford Is Trading At The Critical $17 Price Level

If you followed this blog in November/December you will remember my chatter about Ford stock.  At the time Ford flirted breaking a key price level to the downside at $15.50.  

Of course looking back the stock ended up putting in a good support level right there  and rallied higher.  I got stopped out of the short for a small loss and as the stock broke resistance at $17 I flipped to the long side for the next $1. 

Looking at the chart today again brings up a potentially juicy trading opportunity to the downside.  It looks like F might have put in at least a medium-term double top on Jan 13 and 27 near $19.  

Today the stock gapped down at the open after Ford released earnings and the stock is off almost 10% and looky here…it's sitting right at $17 as of this writing.  

The selloff today is on strong volume and the $17 level is not only horizontal support but also the 50 day moving average.  F has't traded below its 50 dma since early September and with today's price action to me looks like Ford could slice through $17 with a target at $15.50.  

The at the money June put options aren't all that expensive given today's selloff and compared to yesterday.

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