The charts continue to be the number one key to any trader or investor finding the correct entry point for a long or short trade. The best example yet can be found on the daily chart of Ford Motor Company (NYSE:F). Ever since last Friday, Ford has floundered and collapsed lower, sales numbers disappointing Wall Street. The stock was trading at $19.00 last week, only to fall into the $15.00 range. So the big question was on the lips of every trader and investor. Where is the proper entry on Ford? At what price will the stock bounce? The answer could be found in the charts.
By looking closely, it was noted that there was a major gap fill level at $15.18. This dated back to November 4th, 2010. The stock was already down over 20% and this looked to be the point where reward would outweigh risk to the maximum. Sure enough, the stop hit this level, crossing it by a few pennies. No sooner had it done this, Ford rebounded, shot higher, turned positive and jumped all the way back to $15.70, the high of the day. The gap fill entry level was nailed perfectly by using the charts. Any trader or investor that took the trade is in the money nicely and is having a stress free trade. Learn the charts and profit.
Related: General Motors Company (NYSE:GM) and Toyota Motor Corporation (NYSE:TM).
Gareth Soloway
InTheMoneyStocks.com
