Ford Motor Company (F) chart analysis ;Are recent support/resistance levels more reliable than older ones ? (Over 6 months). Yes !
Why ? People/Traders have "short memories" ......
Pay attention to several key factors on this chart ;
1) Very clear key support level
2) First re entry levels are based on this very recent gap level
3) Main full buy trigger is based on that key resistance
4) Gut feeling versus Price action : Its OK to have gut feelings (based on your own interpretation of news, experience, capacity to listen to others, trading techniques etc ....) . Price action always wins out no matter what
5) Gut feeling says we zoom up, but be ready to change your mind fast and always expect the unexpected.
6) Every secret services in the world could not predict the current situation in the Middle East, armed with the best techs, analyst, experienced diplomats ..... etc .....
7) Conclusion ; You see smoke ? Go on the sideline, call the firetruck, and wait for "confirmation"
2 comments:
If oil pops up as you think, why would people want to buy new cars?
My cousin worked for the State Department back in the late 60's into the early 70's. One thing I remember as a youth, was him saying the next major war would be fought in the Middle East.
Question: would you set the stop-loss a) just below the key support, e.g. 14.20, b) slightly above, e.g. 14.35 or c) quite a bit lower than 14.25, for example 13.80?
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