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6/08/99 Ford Motor Co (F)
Points to watch: One to watch in the coming days. Ford is trading at important support levels. The stock is trading near the 38% retracement of its October-April rally at 56.75. This level has acted as support on several tests since late January. On Friday Ford successfully tested, and held on a closing basis, its 200 day moving average (55.7) which had previously acted as support on 11/1/98 and 12/14/98. Despite the stock's ability to hold support, technical indicators continue to deteriorate. Accumulation/Distribution continues to trend down to new lows, and daily MACD remains on the sell signal given on 5/21. Long term indicators are also negative: weekly MACD, RSI, and stochastics all showed strong negative divergences with price action during the April peak, and all 3 indicators continue to head lower. A break below support at the 200 day moving average would be a strong sell signal.
