Ford Closing in to Resistance

Published on Friday, 03 September 2010 07:24 Written by Christopher Lynn

New York, September 3rd (TradersHuddle.com) - Shares of Ford Motor Company (NYSE:F) are trading very close to calculated resistance at $11.89 with the current price action closing at just $11.71 placing the stock near levels that make it difficult to buy.

Ford Motor Company (NYSE:F) designs, manufactures, and services cars and trucks. The Dearborn, MI based automaker sell its vehicles under the Ford, Mercury and Lincoln brand names. Thorugh its subsidiaries it offers lease and financing as well as auto parts with its Motorcraft brand.

Ford's current stock range is defined by current calculated support defined at $10.95 and by the resistance level at $11.89, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Ford, as the stock is well above support, however, as the stock pulls back towards $10.95 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $11.89 then traders will get an opportunity to enter Ford stock by establishing a position as the stock moves to a higher range.