Previously, we saw how Ford (F) stock has consistently underperformed the broader market and its peers (IYK). On March 21, Ford stock had fallen 5.5% in the last year. During the same period, the stocks of General Motors (GM), Fiat Chrysler (FCAU), and Tesla (TSLA) have risen 16.5%, 42.2%, and 9.9%, respectively.
Technical support and resistances
On March 20, 2017, Ford (F) stock breached a significant support level near $12.40 on a closing basis. On March 21, the stock fell further to close at $11.72 with ~4.5% losses for the day.
Due to weak company fundamentals and softening US auto sales, Ford stock could fall toward its 52-week low at $11.07. The 52-week low and high levels are widely followed by investors and traders as key technical support and resistance. You can expect Ford stock to find minor support near $11.07. On the upside, a horizontal resistance level lies near $12.20.
Read Mixed Bag for Auto Stocks: Analysts’ Recommendations in March to learn what Wall Street analysts’ are estimating for auto stocks.
On March 21, a 14-day setup of RSI (relative strength index), a key technical momentum indicator, is hovering at 17.9. In general, any RSI reading below 30 reflects an underlying weakness in momentum. This is the reason why any near-term recovery in Ford stock could be followed by a sell-off.
Continue to the next part where we’ll look at Tesla’s recent updates and its key support and resistance levels for the month ahead.