Could Ford Stock Maintain its Positive Momentum This Week?
In the week ended September 8, Ford Motor (F) stock settled at $11.36, registering a minor rise of 0.1% that week. In the previous week, the stock rose 4.9%, the highest gain for Ford stock over a week in about eight months.
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Could it maintain the positive momentum?
In August, Ford stock violated its prior 52-week low of $10.67 and posted a fresh 52-week low of ~$10.47. On September 6, Ford stock tested the resistance of ~$11.50, which should continue to act as an immediate resistance level this week. Its 14-day RSI (relative strength index) score is hovering near equilibrium at 63.2, suggesting strength in its underlying momentum.
In the previous week, the stock’s RSI score diverged from its price action, which can be an early sign of stock price reversal. On the downside, $11.20 should act as an immediate support level this week.
August sales data
Ford reported a 2.1% YoY (year-over-year) fall in its August US vehicle sales. According to Autodata, the company’s US car sales fell 8.6% YoY in August, while its truck sales were almost flat, rising just 0.1% YoY.
The company’s US vehicle sales were negatively affected by Hurricane Harvey. However, experts expect its sales to rise in the next few months, as soon as people with hurricane-damaged vehicles begin to look for replacement options. These expectations could keep investors’ optimism alive.
In 2016, Ford was the second-largest automaker in the US market (IYK), after General Motors (GM) but ahead of Fiat Chrysler (FCAU) and Toyota (TM). In the next part, we’ll see how Fiat Chrysler stock traded last week.