In the week ending June 14, Ford (F) outperformed the broader market and General Motors (GM). Last week, Ford stock rose 2.3% compared to 0.5% gains in the S&P 500 Index and General Motors stock. Ford traded on a positive note for the second week. The stock rose 2.5% the previous week. On a month-to-date basis, Ford has risen 4.8% as of June 14 after losing 8.9% in May.
Recent recall update
On June 12, Ford announced a recall for ~1.2 million Ford Explorers in the US and 28,000 Explorers in Canada. The SUVs were built at the company’s Chicago assembly plant between May 2010 to June 2017.
In a press release, the company highlighted that the impacted Ford Explorers “are exposed to frequent full rear suspension articulation (jounce and rebound) may experience a fractured rear suspension toe link.” The company added that the defect could increase the risk of a crash by diminishing the steering control.
Key resistance levels to watch this week
On June 14, Ford stock settled at $9.98 after testing the support near $10.10 the previous day. For Ford, $10.10 will likely continue to act as an immediate resistance level this week as well. On the downside, an immediate support level in Ford stock lies near $9.87—at its 50-day moving average.
Just like other automakers, Ford stock could continue to be sensitive to any updates related to the ongoing US-China trade war.