GO
Loading...

Big Move Coming in Ford – but Which Way?

Wednesday, 18 Jul 2012 | 6:48 PM ET

If you’re looking for a stock that’s about to move Josh Brown says check out Ford.

On the bearish side, the monthly chart looks terrible, says Brown, author of The Reformed Broker blog.

“It’s setting up a massive head and shoulders pattern.” That’s a very bearish technical signal.

However, there’s reason to be bullish.

The stock is sitting on $9.38 a key level. “If it can hold, I think the stock has upside,” he says. It would deny the technical signal.

So which way should you bet?

Brown thinks the path of least resistance is higher and suggests playing the stock long – but with a stop just below $9.

“If $9 breaks then something is wrong," he admits.

But if it holds not only is the head and shoulders pattern denied, Brown thinks the stock could surge. He feels it’s been cut in half as a proxy for global growth and if the market gets any positive economic data, "we could be setting up for a huge reversal.”

Trade of the Day: Ford Motor Reversal?
The Fast Money traders explain why they think Ford Motor is a good investment now.

Posted by CNBC's Lee Brodie




______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On July 18, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long GB; Karen Finerman is short SPY; Karen Finerman is short MDY; Karen Finerman is short IWM; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Dan Nathan is long BAC JULY 6 + 7 PUTS; Dan Nathan is long C AUG 26/23 PUT SPREAD; Dan Nathan is long MS OCT 10/5 1X2 PUT SPREAD; Dan Nathan is long INTC JULY/AUG 24 PUT SPREAD; Dan Nathan is long WMT JULY 6750 PUT SPREAD; Dan Nathan is long SBUXAUG 50/45 PUT SPREAD; Dan Nathan is long SDS; Dan Nathan is long VIX AUG 20/25 PUT SPREAD; Josh Brown is long AAPL; Josh Brown is long JPM; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long MCD; Josh Brown is long QCOM

For Brian Marshall
Neither ISI nor its affiliates beneficially own 1% or more of any class of common equity securities of the subject companies referenced in this Report. No person(s) responsible for preparing this report or a member of his/her household serve as an officer, director or advisory board member of any of the subject companies. Neither ISI nor its affiliates have any investment banking or market making operations. At various times these reports mention clients of ISI from whom ISI has received non-investment banking securities related compensation in the past 12 months.

CNBC.com with wires.

  Price   Change %Change
F
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report