- Market Commentary -

February 10, 2010 (FinancialWire) (By Frank Kollar) — Shares of Ford Motor Co (NYSE: F) reached their highs, at just above $12.00 on January 11. Since that date they have made a series of lower highs on each rally attempt.  

On the downside, shares have stopped at about $10.40 a share on each sell off.

If you draw a line through the declining highs and also through the two sell off bottoms, you get a pennant formation with a declining trend resistance line and a horizontal trend support line.

On of these lines will be broken in coming days and usually, the direction of the break will forecast the direction of share prices over the coming weeks and possibly months.

Traders should be watching for a close either above $11.40 as a potential breakout leading to a rally, or below about $10.40 as a potential break to the downside leading to further losses.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent. For 2008-2009, his strategy resulted in a 81.9% gain, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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