Trade of the Day: Ford (NYSE:F)

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Today, we’re opening a new bearish trade on Ford (F). An announced recall of 681,000 seat belts is a short-term problem for F, which by itself shouldn’t really be a big cause for concern. However, we believe this time it’s a little different.

As uncertainty builds around the European economy and the viability of trade relationships in Asia, Mexico and Latin America, we feel that traders are looking for an excuse to start hedging against some of the big, consumer industrials like F.

The stock initially popped after earnings and positive sales reports last month. However, rising interest rates and flattening labor numbers are likely to add to the list of potential spoilers of any positive momentum. We recommend opening the position now while the stock is being rejected at resistance.

‘Buy to open’ the F January (2017) 12 Puts (F170120P00012000) for a maximum price of $0.35.

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/12/trade-of-the-day-ford-nyseford/.

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