uploads/2017/03/5-14.png

What Does Technical Analysis Suggest for Ford Stock?

By

Updated

Ford stock

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.

Article continues below advertisement

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.

Weakening momentum

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.

Advertisement

More From Market Realist