The year has been a tough one for Ford as it has dealt with a lack of love on Wall Street and more recently, an overhaul in its executive suite. Since the start of the calendar year, the automaker's stock has shed nearly 7% of its market value, trailing the S&P 500 by about double that. Thing is, Ford's price trajectory could finally be about to change (in the short-term, at least). Shares are working on carving out a near-term bottom believe it or not.
The pattern in play right now for Ford is an inverse head and shoulders pattern, a bullish reversal setup that signals exhaustion among sellers. The pattern triggers a buy signal with a push through $11.20. It's worth noting that a breakout above $11.20 would also coincide with a break through the downtrend that's harangued Ford's share price since mid-March.
That's extra evidence that buyers could be building strength here.
Editor's Pick: Originally published June 5.
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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.