Big Move Coming in Ford – but Which Way?


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.”

Posted by CNBC's Lee Brodie

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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
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