Today’s strength in Ford (F) has hurdled key near-term resistance at 12.95, which triggered additional buying (short covering too?) that has propelled the stock to an intraday high at 13.30 so far. To the extent that F can hold and extend its early gains, my next immediate target is 13.45/55. However, if in fact the April 8 low represented the end of a correction off of the March 18 high at 14.54, then the current upmove also represents the start of a new upleg that should revisit the March high on the way to 15.25/50 thereafter. Only a decline that breaks back beneath 12.95 on a sustained basis will compromise my current outlook.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.