Ford, Tesla, Virgin Galactic Look Set For Continuation Higher Due To This Key Indicator: What To Watch For

Ford Motor Company F, Virgin Galactic Holdings Inc SPCE and Tesla Inc TSLA all had higher than average daily trading volume on Friday.

Volume is the total number of shares traded in a security within a specific period of time. It is a momentum indicator used by technical traders to gauge overall interest and sentiment in a stock. Volume is also used as an indicator to confirm a trend or trend change.

When bullish trading volume increases, the share price of the stock usually moves higher whereas increasing bearish volume, when a stock is in a downtrend, usually pushes the price lower. In contrast, lower than average trading volume usually indicates consolidation, which results in the stock trading sideways.

• When a bullish trader has a position in a security, decreasing volume can act as a sell signal because it indicates the stock is running out of buyers.
• A bearish trader in a short position may watch for decreasing bearish volume to indicate the stock is running out of sellers and a reversal may be in the cards.

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The F Chart: 76.33 million shares of Ford's stock exchanged hands on Friday, compared to the 10-day average of 62.27 million. This may indicate confirmation of a trend change. 

The SPCE Chart: Virgin Galactic's trading volume measured at 23.01 million on Friday, compared to the average 10-day volume of 13.42 million. This may indicate a trend change.

The TSLA Chart: 28.20 million Tesla shares exchanged hands on Friday, compared to the 10-day average of 18.37 million shares. This may indicate bullish continuation from the break of a bull flag pattern Benzinga called out Sept. 16.