FORD
Ford likes to run with tech stocks$F
reduced my target to $20ish since we grabbed demand lower & Tesla is the king of the EV market. But the similarities are very interesting w the late 90s run.
Another interesting note is that Ford and General Electric both ran with tech stocks in the late 90s to yr 2000
Ford - Weekly long term We can see a sharp move upward after creating a low low RSI.
The low RSI can be promising in the long term. This might be the lowest price that we will see in the next few years. However, we need to see the next correction. If we see a double bottom in the next year or so, Ford will be bullish for the next few years.
Engulfing candle at resistance. Use Ford as hedgeThe market is undoubtedly in a raging up trend, therefore, I usually have many long positions open. Sometimes I will short weak stocks to protect my long exposure. NYSE:F seems like an ideal candidate here after that engulfing candle at resistance. Try to get a good risk to reward entry. Stop loss above $7.45, target near $7.10.
$F in chatFord chart is pretty, and the company has made some big moves that should lead to futures success.
- New Bronco
- New CEO
- Underprice IMO
Long term slow grind up most likely. Im playing this as a long term hold may become a dividend bag holder.
Historical resistance needs to break but I think accumulating at these prices is easy picking.
Could easily see $9 IMO, might consider selling if we see $12
OPENING: FORD DECEMBER/AUGUST 4/7 LONG CALL DIAGONAL... for a 2.55/contract debit.
Metrics:
Max Loss on Fill: $255
Max Profit on Fill/ROC% at Max: $45 (17.6% at Max)
Break Even: 6.55
Debit Paid to Spread Width Ratio: 85%
Delta/Theta: 47.07/.53
Notes: A small, bullish assumption trade in Ford in one of my favorite synthetic covered call setups. The debit paid to spread width ratio isn't what I generally like to see out of these, with 75% or less being ideal, but part of that has to do with the shorter duration of the front month (31 days 'til expiry) than I would ordinarily go, so I'm fine with that. As with a covered call, look to roll out the call side on approaching worthless with max being realized on a finish above your short call strike. The take profit is subjective, but I usually like to start out with a take profit at max (here, 3.00 -- the width of the diagonal) and then reduce that target with credits received on roll of the short call (e.g., if you receive a .25 credit on roll, reduce your take profit to 2.75).
FFord Motor Company (F) showed some strength after a pattern breakout before getting rejected around the 200MA and tumbling back down. With strong support around $5.80, it appears to be surging back upwards to possibly test the 200MA again. However, with the RSI climbing as well, it may repeat itself after filling the gap upwards and getting rejected again.