Ford Motor Company
Ford Motor Company (F) is one of the oldest and most well-known automobile manufacturers in the world. The company is the second largest by volume in the US after General Motors (GM). It’s known for the innovation that it brought to the automobile industry. It introduced the moving assembly line concept in auto manufacturing. In this part, we’ll look at Ford’s recent performance on Wall Street. We’ll discuss key technical levels for its stock.
In its 2Q16 earnings presentation, the company highlighted the risks and cautioned investors about any possible downturn in US auto sales. This was followed by a massive sell-off in its stock.
Key support and resistance levels
Last week, Ford ended the week with a marginal gain of just 0.5%. It closed at $12.17 on September 23, 2016. With this mixed movement, prices are hovering close to the next support of $12.00—a swing low as posted on June 27, 2016. A breach of this support area should attract renewed selling pressure towards a key horizontal support level of $11.45. On the upside, the price will likely lead to resistance near $12.40.
Recently, Ford announced its intentions to speed up its autonomous vehicle development. By 2021, Ford plans to start producing autonomous vehicles for ride-sharing services. The development would be in line with its Smart Mobility business plan.
In the next part, we’ll discuss how Fiat Chrysler’s movement last week will change its technicals.