SubscribeIs Ford Primed for a Pop?
I happened to stumble into one of the stock forums and came across a posting that referred to the struggling U.S. auto maker Ford (F).
I wanted to get a good long term outlook on the stock to see if we have come close to hitting a bottom. From looking at a 5 year monthly chart two things jumped out at me immediately. The first was the fact that the stock has recently formed a positive divergence between the Relative Strength Indicator (RSI) and price of the stock. The same can be said of the Moving Average Convergence Divergence (MACD). The second was an observation that the Directional Movement Indicator (DMI) has not yet given me a buy signal.
From looking at the MACD which is a “buy” and the DMI which is a “sell” you can conclude that the stock has moved into a holding period. However, the fact that there is a positive RSI could be hinting at the fact that upward momentum may soon take over and eventually push the DMI positive as well.
Now, I do not recommend jumping into such a play early, but it certainly should be on your radar screen. In my opinion, these will likely be the lowest prices for the stock for some time and it may be worth investing in for the long term.      Â
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