In the week ended September 15, Ford Motor (F) stock settled at $11.62, rising 2.3% that week. The rise marked the fourth consecutive week of gains. In the final week of August, the stock rose 4.9%, which was the highest gain over a week for Ford stock in eight months.
In August, Ford stock turned positive after posting a fresh 52-week low of $10.47. In general, the 52-week low and high levels act as major support and resistance levels for a stock price. Therefore, any downward movement by Ford stock should face strong support near its $10.47 low. Immediate horizontal support lies near $11.20.
On July 19, Ford stock rose to ~$11.83, which could be seen as an immediate resistance level for the week ahead. Its 14-day RSI (relative strength index) score maintained an upward trajectory at 68.6. At the end of August, Ford’s RSI score diverged from its price action, which could signal a reversal in the stock price.
Building up optimism
In August, Ford reported a 2.1% YoY (year-over-year) fall in its 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 (IYK) weakened in areas affected by Hurricane Harvey. However, experts expect Ford’s sales to rise in the coming months, as soon as people with damaged vehicles from hurricane-affected areas begin to look for replacement options. These expectations could keep investors’ optimism alive.
In 2016, Ford was the second-largest automaker in the United States, behind General Motors (GM) but ahead of Fiat Chrysler (FCAU) and Toyota (TM). Continue to the next part, where we’ll see how Fiat Chrysler stock traded last week.