Shares popped on the news, rallying up to 11% in the pre-market, but they've been fading over the course of the trading session, only up around 5% as I write. With shares near an important resistance level at $21.50, but well above the equally strong support levels in the mid-teens, I think it's premature to jump into this name just yet. Instead, a bounce at a weaker $19.50 support level would be a more cautious entry opportunity for investors.
Bank of America
Nearest Resistance: $12.25
Nearest Support: $11
Catalyst: Technical Setup
Nearest Support: $11.50
Catalyst: Earnings Call Things are looking less bullish over at Ford (F - Get Report). The automaker reported its own fourth quarter numbers yesterday morning, and shares are continuing to sell off today. It doesn't take an expert market technician to see what's going on in shares of Ford. One glance at this stock's chart, and the rounding top in shares looks pretty clear. As I write, Ford's shares are sitting right below that top, not an auspicious position to be in. That's magnified by the fact that Ford is also so far above its nearest significant support level at $11.50. That means that this stock could have a lot further to fall before buyers start stepping back in. I'd recommend waiting for support to get established before attempting to jump in. If you're looking for an exit strategy in Ford, now's the time to get out.
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