Stock of the day Ford
17 October 2024
Today, let's focus on Ford, which has been trading within a rectangle pattern for the past few weeks, moving sideways in a consolidation phase. The sideways trend is highlighted with orange lines on the chart, and it comes after a bounce off key horizontal support, marked with a yellow line. Price movement like this—sideways after a key support bounce—is often seen as a sign that selling pressure remains in place, suggesting that sellers are simply regrouping for another downward move.
If the price tests the horizontal support once again, it could be a critical moment. A failure to hold this level could result in a bearish breakout, opening the door for a significant leg down. On the other hand, a breakout to the upside from this rectangle would signal that the buyers have regained control, confirming that the bounce has held. In this case, the target for further upward movement would be the green downtrend line, marking a key level to watch for potential profit-taking or resistance.