Are You Ford Tough
- Posted by Greg Harmon
- on September 26th, 2013
Back in April we took a look at a car company that looked like it had a lot of potential. No it was not Tesla, $TSLA, but Ford, $F, in Ford is Preparing for a Long Term Breakout. I took the proposed trade, buying the January 2015 15 Strike Calls for on April 26th for $1.23. Since then I rolled half of them to the January 2014 16 Strike Calls at the end of May, getting back half of my premium. It has continued to rise since then and is doing good things for the portfolio. But the look in April was suggesting a long term breakout was possible. So how does it look now? Lets take a look.
The weekly chart back to 1999 shows a few key potential resistance levels in the next few dollars higher. It has support now at the 38.2% retracement of the major move lower below at 16.19 and nearly retraced the expected 38.2% target on the bearish Shark Harmonic. The 50% retracement of the major move lower comes at 20.87 but there is long term resistance at 18.93 along the way. Is it still worth playing to the upside? Yes, but at this point you need to reconsider the trigger to enter or add to your position. A move above 18 gives a clean path to the resistance levels above. You might consider taking profits on your position if it moves back under 16.19. There are many targets higher along the way, but the monthly chart with the Inverse Head and Shoulders points to the reason to look at this as a long term trade. It is just getting started.
Dragonfly Capital Views Anniversary Celebration Sale Ends this Week
For a limited time the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $600.
This is 20% off of the standard annual subscription price and nearly 45% off of a rolling monthly membership! Don’t miss this limited opportunity to join or upgrade! Sign up here.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through September 2013 Expiry and sign up here
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
Dragonfly Capital Updates
- Top Trade Ideas for the Week of December 9, 2013: The Rest Premium
- Top Trade Ideas for the Week of December 9, 2013: The Best
- SPY Trends and Influencers December 7, 2013
- Cleveland’s Best Linkfest
- Macro Week in Review/Preview December 6, 2013
- With The US Market in the Dumps Turn To China (Part III)
- Testing the Waters With Celgene
- A Long Term View On…. The Redux of 2013
- Premium Earnings 12-5-13
- 4 Lessons From A Glance Back at 2013