Today's strength in Ford (F) has hurdled key near-term resistance at 12.95, which triggered additional buying (short covering too?) that has propelled the stock to an intraday high at 13.30 so far. To the extent that F can hold and extend its early gains, my next immediate target is 13.45/55.

However, if in fact the April 8 low represented the end of a correction off of the March 18 high at 14.54, then the current upmove also represents the start of a new upleg that should revisit the March high on the way to 15.25/50 thereafter. Only a decline that breaks back beneath 12.95 on a sustained basis will compromise my current outlook.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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