Long-term shareholders of Ford Motor Company haven’t had much to celebrate over the past three weeks. The stock has been stuck in a narrow range, but some traders have still been able to profit.
When Ford reached levels around $20.50, these traders sold. At the top of the range there is resistance, or a large group of sellers. They put a ceiling on the price.
When the stock dropped to levels around $19.30, these traders bought. At the bottom of the range, there has been a large group of buyers. They put a floor under the price.
Until something changes, traders will be looking to buy and sell at these levels. They want to continue to profit from a well-defined trading range.
By Mark Putrino
© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.
