They say that markets have memories. And if it’s true, there’s a good chance the rally in shares of Ford Motor Company may be about to end.
A market memory is a reference to a support or resistance level retaining its importance for an extended period of time. In the case of Ford, it may be the $16.25 level.
In early June, shares of Ford ran into a wall of sellers when they reached $16.25. The rally ended, the stock rolled over and a downtrend followed.
Now Ford has reached this important level once again. If the market has a memory, there’s a good chance the stock hits resistance. This could pause or even put an end to the rally.
By Mark Putrino
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