F unable to break through key resistance level
Ford Motor Company (F) Technical Analysis Report for Oct 28, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, F finished Wednesday at 7.70 losing $0.22 (-2.78%), but still outperforming the S&P 500 (-3.53%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (F as at Oct 28, 2020):
Wednesday's trading range has been $0.25 (3.26%), that's slightly above the last trading month's daily average range of $0.23. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for F.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 7.88 (R1), the market closed below it after spiking up to 7.88 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on October 9th, F actually gained 5.79% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 7.57 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Ford Motor. Out of 405 times, F closed lower 56.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.35% with an average market move of -0.32%.