In today’s stock of the day, let’s take a look at Ford Motors.
The automaker is moving into a decisive moment on the chart as price action tightens inside an ascending triangle pattern. This formation is defined by the orange horizontal resistance on top and two converging black uptrend lines acting as support. As volatility narrows, Ford is likely enjoying the last quiet phase before a breakout takes place.
Ascending triangles are generally considered bullish continuation patterns, which means the base scenario here favors an upside breakout. A close above the orange resistance would trigger a fresh buy signal and potentially open the way for a sustained upswing.
Of course, the opposite scenario cannot be ignored. A downside break below the black uptrend lines would signal weakness and invite sellers into the market, creating a bearish reversal setup. For now, all eyes are on the apex of this formation, as the breakout should arrive soon.