Ford Motor Co. (F) - Get Report was upgraded today by TheStreet's Quant Ratings service. Regular readers of Real Money have learned from reading Kamich's Korner that they gained a valuable perspective when they combine investment approaches. Finding a stock with a good-looking chart and an upgrade can be rewarding. Keep in mind that no investment approach is perfect and two approaches combined will also not be perfect, but it is a worthwhile way of looking for winners.
Let's check out the charts of Ford.
In this daily bar chart of F, above, we can see a rally from the middle of August. Prices have crossed above the 50-day moving average line and the 200-day average line. The slope of the 50-day line has turned positive while the slope of the 200-day line is still negative. The On-Balance-Volume (OBV) line has moved up as prices have advanced. In September, prices have advanced but momentum has slowed giving us a relatively small bearish divergence.
In this weekly bar chart of F, above, we can see that prices have rallied above the declining 40-week moving average line. Rallies above the 40-week average have happened before but with hindsight we can see that they did not last. The weekly OBV line has improved the past six weeks and the Moving Average Convergence Divergence (MACD) oscillator is closer to crossing above the zero line for a buy signal.
In this Point and Figure chart of F, above, we can see an upside price target projected to the $15.39 area.
Bottom line: Ford has rallied back to a four-month band of resistance in the $12.50 to $13.50 area from December-March. Prices could punch up through this resistance but right now I would look for F to trade sideways for a while before trying to push still higher.
Click here to sign up for Quant Ratings, where you can read our full report on Ford or more than 4,000 other stocks that our service rates in real time every market day. However, please note that our Quant Ratings service assesses stocks using a proprietary computer model that runs a variety of factors through quantitative and technical analysis. Ratings do not necessarily reflect the opinions of Jim Cramer or other columnists, who may use different criteria to grade stocks.
(This article originally appeared Oct. 5 on Real Money, our premium site for active traders. Click here to get great columns like this from Bruce Kamich, Jim Cramer and other writers.)
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