After breaking down out of a descending triangle pattern, shares of Ford Motor Company F are in a freefall. But they're approaching a level that may provide support.
In May, Ford ran into resistance at $13.40. Levels that were previously resistance have a tendency to convert into support and that could happen here.
A number of investors who sold Ford at $13.40 decided they made a mistake when it traded higher. Some of these remorseful sellers vow to buy their shares back, but only if they can get them for the same price they sold at.
As a result, they will place their buy orders at $13.40. If there are enough of these orders, it will cause support to form. This support could halt the sell-off.
See Also: Ford's Stock Reaches Critical Support Level
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