Ford stock in September
In the week ended September 29, 2017, Ford Motor (F) stock settled at $11.97, a weekly rise of 1.1%. It was the sixth consecutive week that the stock rose.
Highest gains in 22 months
In August, Ford stock posted a 52-week low of $10.47, where it found strong support and then turned positive. This positive trend continued last week, and September ended with an 8.5% rise. These were Ford’s highest gains for the last 22 months.
Its 52-week low of $10.47 should continue to act as an important support level for the stock in the coming months. In September, the stock violated a prior swing resistance level at $11.80, which should act as a minor support going forward. On the upside, a key horizontal resistance level could be seen near $12.30. A horizontal support or resistance is an important price level where price action could hit a roadblock.
Ford’s 14-day RSI (relative strength index) indicator was moving in an upward trajectory last week. It entered overbought territory in September with a reading of 77.2 on September 29, 2017, suggesting strength in the underlying momentum.
Could upward movement continue?
In August 2017, the company 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 nearly flat with a 0.10% YoY rise. Ford’s firm truck sales compared to its falling car sales could help protect its 3Q17 profit margins. That could be one of the reasons Ford stock rose in September.
In the next part, we’ll find out how Fiat Chrysler stock traded last week.