June 4, 2011

  • Ford gave a clean breakdown from a trend line in weekly chart.
  • Price has closed below 50 week moving average.
  • Immediate support for the stock is the last swing low 13.75 and the Golden ratio at 13.25 level.
  • Unless a big turnaround comes Medium term looks weak for F.
  • IWM Weekly chart has given another bearish engulfing for bears.
  • Price has also closed below its 20 week moving average.
  • But daily chart shows a chance for a small bounce. Price is at a support line and the lower Bollinger band. Daily candle looks like a pin bar reversal candle. So combination of these things might result in a small trading bounce.
  • One more thing to note is that price after giving the first bearish engulfing did go to 85 levels before selling off. So we may expect a similar price action to happen.
  • But the medium term looks bearish.
  • First chart shows Dow closing near the previous support level of 12090 - 12110.
  • Breaking below this level may take Dow to 11500 levels in the short term.
  • Price has closed below its 100 Day Moving Average. But Stochastic indicator is showing Oversold reading which might result in a bounce. If price holds 12090 and come back to close above 100 DMA then we may see a good turn around.
  • Hour chart is getting resisted at 100 Hour moving average. So good up move can be seen on closing above this level.


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"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore