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Ford Stock Posted a Fresh 52-Week Low Last Week

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Aug. 23 2017, Updated 10:53 a.m. ET

Ford stock

In the week ended August 18, Ford Motor’s (F) stock settled at $10.56, registering a 1.9% weekly fall. In the previous week, the stock also fell 1.6%. Notably, Ford stock violated its prior 52-week low of $10.67 and posted a fresh 52-week low near $10.47 last week. In general, 52-week lows and highs act as major support and resistance levels for the stock price. Now, let’s take a closer look at what technical analysis suggests for Ford stock going forward.

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Weakness could remain intact

As of August 21, Ford stock is trading at $10.57. The 14-day RSI (relative strength indicator) is hovering at the 31.3 mark, showcasing underlying weakness in the momentum. The next important support level lies near $8.90. On the upside, $10.70 should now act as an immediate resistance level followed by a key resistance near $11.05.

Recent fundamentals

In July 2017, Ford sold 200,212 vehicle units in the US, which reflected about a 7.5% fall as compared to the corresponding month of 2017. The company’s US fleet sales fell 26.4%, while its retail sales were down by 1.0% in July.

Previously in 2Q17, Ford’s global sales went down to 1.7 million vehicle units, reflecting a drop of about 43,000 units on a YoY (year-over-year) basis.

In the second quarter this year, Ford reported adjusted earnings of $0.56, which reflected an increase of about 7.7% against the company’s adjusted EPS of $0.52 in 2Q16. However, Ford’s 2Q17 results were not well-received by investors. These negative sentiments could be driven by the company’s falling market global share and dismal 2017 outlook.

Ford was the second largest automaker in terms of 2016 US auto sales (XLY) behind General Motors (GM) but ahead of Toyota (TM) and Fiat Chrysler (FCAU).

Next, we’ll learn how Fiat Chrysler’s stock traded in the third week of August 2017.

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