In my October 22 Trade of the Day stock recommendation, Ford (NYSE: F) was trading at $13.86. I wrote then that Ford “ broke from a right triangle following two buy signals” and set a $16 target by the end of 2010. The target for Ford stock was exceeded (a peak of $16.83 in December) and then in January Ford stock hit $18.97.
But a combination of profit taking and a market pullback drove Ford’s shares back to its 200-day moving average at around $14. And recently shares have been bouncing back to around $15.00 as of this writing.
All of our internal indicators favor new purchases of the stock, and on March 15th our internal proprietary indicator (CBR) flashed a buy signal. S&P has rated Ford a “Four-Star Buy” and estimates that Ford should earn $2.09 for 2011 vs. $1.66 last year.
S&P has a 12-month target of $18 for Ford stock, which matches my six-month technical target.
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
Editor’s Note: A previous version of this story incorrectly cited the price of Ford stock on October 22, 2010. The mistake has been corrected.
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