In my last post I wrote about Nvidia (NVDA) showing a possible double bottom. It appears that the stock has followed through with the breakout, moving above 21 and showing strong volume. Look for a possible further move up soon, I’m picking up some shares at these levels.
Nvidia (NVDA) chart looks like it could be poised for a comeback. If the stock can break through it’s resistance, we should see a strong follow through, driving the stock upwards towards previous highs. Technically, the chart shows positive momentum back. Keep watching NVDA for the breakout.
The Ford Motor Company said on Thursday that it earned $100 million in the first quarter, after a loss in the same quarter a year ago, a surprising improvement amid a slump in the United States market that has cut sales of lucrative trucks and sport utility vehicles.
Ford’s automotive operations earned a pretax profit of $669 million, compared with a loss of $895 million a year ago, though the company continued its lengthy streak of money-losing quarters in North America. Shares of Ford jumped as much as 17 percent to $8.79, the highest level since November, in early afternoon trading on the New York Stock Exchange. Ford’s biggest one-day gain ever is 15.7 percent.
Ford’s stock chart shows that investors were hoping for some good news, running the stock up almost 50% from lows in mid-March. There should be two levels of support, at around $7.5 and 7.0. After such a significant runup, it may be wise to wait for a good entry point. However, this is the first step in a long term recovery, and Ford’s stock price should stand to benefit as well.
The company reaffirmed its commitment to becoming profitable by next year in North America, a crucial tenet of its restructuring plan known as the Way Forward, even as high gasoline prices and a sour housing market sap demand for big vehicles. The Way Forward involves cutting thousands of jobs and retooling manufacturing lines to help achieve better efficiency and profitability. So far, it seems that Ford’s efforts are working, with the latest report bringing a breath of relief to Ford investors.
To reach its goal, Ford’s chief executive, Alan R. Mulally, said the automaker may need to eliminate more shifts at truck assembly plants and offer more buyouts. If not enough workers leave voluntarily, he said, layoffs are possible.
Since the automaker lost $12.6 billion in 2006, it has cut about a third of its hourly work force through buyout and early retirement offers. Another 4,200 workers accepted a second round of buyouts offered earlier this year, fewer than the company had hoped.
After correcting with the market downturn, First Solar Inc. (FSLR) seems to have formed a double bottom and recently broke out on heavy volume.
MACD is turning positive. Expect a possible short term resistance at ~200, if the market weakness continues.
With the weakening economy, gold prices have been skyrocketing. Based on past gold prices, there is still a ways to go before gold tops out. Take a look at the chart:
Advanced Micro Devices, Inc. (AMD) has taken a beating over the past few months, and there doesn’t seem to be an end in sight. The MACD does show a slight sign of recovery, but in the current market conditions, I’d say a recovery in the near future is unlikely.
First Solar, Inc. (FSLR) recently broke out of an ascending triangle formation. Resistance has become support at around 220. First Solar has gone on an amazing run over the past few months and could be headed higher.
Keep this one on your watchlists.
