First up is Ford (F), the Detroit automaker that's been a bit of a mixed bag in 2013. While Ford has seen its share price rise by close to 10% this year, the firm has really spent most of the last four months consolidating sideways -- not exactly taking part in the rally that's been taking shape elsewhere in the market. But shares could be due for higher ground in May.
That's because Ford is testing a breakout above its $14 level this week. Ford has been forming a longer-term rounding bottom pattern, a setup that indicates a gradual shift in control from sellers to buyers; the buy signal comes when Ford is able to clear the top of the range at $14. While shares did move through that level this week, we're still close enough that I'd recommend waiting for better confirmation before diving in. A print above $14.30 should be sufficient.Momentum backs up the upside thesis for Ford - 14-day RSI has started on a short-term uptrend since early April. Because momentum is a leading indicator of price, that's a bullish signal. If you buy, keep a tight stop in place.
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