Ford Motor Company (NYSE:F) is forming what could be a tell tale sign of a top on the daily chart. The candle formation is known as a possible topping tail. A topping tail occurs when a stock runs up intra day early and then pulls back later in the day. It creates a long tail on the top and a close in the lower 25% of the candle.
In addition, one must analyze the daily chart for an over extended rally. Ford Motor Company clear is extremely extended on the daily chart. When this happens, a technician will look closely for a topping tail or some other reversal signal.
Today, Ford Motor Company has a chance to create that. The stock has soared in recent weeks and this morning was no different. It jumped with a small gap higher and ran to all the way up to $14.54. All of a sudden, it began to reverse. Ford now sits at $14.09 down $0.02 on the day. What a reversal and it looks like this could be the topping tail many are waiting for!
Related Stocks: Toyota Motor Corporation (NYSE:TM)
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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