After hitting its low at $1.43 in early 2009, Ford (F) has made a remarkable recovery hitting high of $14.46 in 2010. Since then, it has given up some of its gain and now trades at $10 per share.
The question investors are asking is how much more will F decline before it starts climbing higher again into high $10s. To answer this question, I took a look at Fibonacci Retracement levels using its recent high and low.
Below is a 2 year daily chart of Ford with its Fibonacci Retracement levels. Currently, Ford is near its 38.2% retracement as it is headed towards $9.48 level.
23.6% @ 11.38
38.2% @ 9.48
50.0% @ 7.95
61.8% @ 6.41
My prediction is that Ford will decline even further beyond 38.2% and will reach 50% retracement level at $7.95. I do not currently own Ford stock but definitely will be buying if Ford falls to $8 range. What a great buying opportunity will that be! But first, let’s see if Ford falls to $9.48 and then we can get excited about $8.
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