Ford's (F) long been a standout as the best of the Big Three Detroit automakers. Not only was this firm the only one to not require bailout funds and to avoid going through bankruptcy in the heat of the financial crisis, Ford was also the first of the Big Three to achieve the quality and efficiency changes it needed to stay a relevant automaker.
As a result of that, Ford's been a popular trading vehicle on Wall Street. So where's this vehicle going now?
Shares of Ford, one of TheStreet Ratings' top-rated automobile stocks, took an arguably outsized hit back in early 2011 despite announcing record numbers for the quarter. That hit derailed the uptrend that shares had been enjoying and sent shares considerably below the 52-week highs that they'd been making just weeks before. Since then, traders have been watching intently as shares put in an inverse head-and-shoulders bottom that's still yet to trigger.For the upside pattern to trigger, we'll need to see a break above the stock's neckline. While the fizzle from the right shoulder seems like a bad omen for the inverse head-and-shoulders formation, it's not. Shares still made higher lows and bottomed above the 50- and 200-day moving averages, two prices that act as support levels for shares. It's also far from uncommon to see multiple (called complex) shoulder formations -- the key is to wait for that neckline break before taking the trade. Ford was recently highlighted in "Oil's Impact on 5 Transport Stocks."
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