In the stock market, certain price levels are more important than others. That’s the case with $13.40 for Ford Motor Company (NYSE:F).
Back in March, it was resistance. After a large move higher, the shares ran into a wall of sellers at the level and a selloff followed.
Then $13.40 was converted into support in July. When this support broke, the shares made a large move lower.
Ford’s stock has been in rally mode, but if it reaches $13.40, there’s a good chance it hits resistance again. Many of the investors who bought the stock regret doing so now that it is lower. Many would decide to sell, but they don’t want to take a loss.
As a result, they will be placing their sell orders at $13.40. If there are enough of these orders, it could convert the level back into resistance.
