Hi everyone. I am going to start a series on swing trading, exclusively on this platform. I think this caters more to traders over investors.
We’ll be looking at a trade setup on Ford (NYSE: F) today:
It is currently trading in a multi-day falling wedge pattern on the daily. Let’s zoom in and see the trend on the lower timeframes, since the big picture tells me that F is consolidating over 13.03 support.
On the 2h timeframe, notice divergences forming on F. There’s a hidden bullish divergence, that is swiftly followed by a regular bullish divergence. This validates the falling wedge lower trendline - it is now likely we will see a push back up towards 13.60s over the next few sessions.
Whether we break out or not in the same session is up for debate. But given that the range is fast tightening on F, we could be in for a “coiled spring” setup into earnings, which is on 24th April.
Given that F has already pre-empted that Q1 sales has been strong, it is likely to continue to drift higher. This means the key barometer will be Q2 outlook - if their outlook is similar to what was said on the release of Q1 data then momentum takes us higher into 15s by the end of the month. This could be the impetus needed for a bullish move higher.
However, for now the minimum I see on any move up on F is 13.60s. Downside would be to risk a re-visit of the 12.74 level.
Upside Targets: 13.70, 13.98, 14.26, 14.64, 14.91, 15.13, 15.40
Downside Target (SL): 12.74
$Ford(F)$ $Tesla Motors(TSLA)$ $Rivian Automotive, Inc.(RIVN)$ $NIO Inc.(NIO)$ $XPeng Inc.(XPEV)$
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