My near and intermediate term work are warning me that Ford (NYSE: F) hit a significant near-term rally peak at 7.98 on 10/21, which ended the upleg from the 10/02 low at 6.61. If my workproves correct, then F should correct into the 7.40/20 area in the upcoming days, where it will test important support, in particular, against the Mar.-Oct. up trendline.

If F pivots off of that area, then I will have to enter a new long position ahead of another upleg towards 9.00. However, in the event that 7.20 is violated, F will press still lower to revisit the Oct. 2 low at 6.61, which will represent a critical test of support that will tell us if the bull phase in F is having a shallow correction or a much deeper one. MJP 10/23/09 1:00 PM ET (7.71)

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of

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