In the week ended June 21, Ford Motor Company (F) underperformed the broader market and its direct home market peer General Motors (GM). Ford stock remained mixed last week and settled with 0.1% minor weekly gains as compared to a 2.2% rise in the S&P 500 Index. Last week, GM rose by 3.5%. In the previous week, Ford stock went up by 2.3%. On a month-to-date basis, it has gone up by 4.5% as of June 24 after losing 8.9% in May 2019.
Recent recall update
In the last few years, Ford has lagged behind General Motors in terms of its electric vehicle lineup. Nonetheless, the company seems to be finally accelerating its electric car and autonomous vehicle development program by partnering with other automakers. According to a recent Reuters report, “Volkswagen and Ford are close to reaching a deal on a partnership for developing self-driving and electric cars.”
On June 12, Ford recalled about 1.2 million Ford Explorer SUVs in the US and 28,000 units in Canada. These SUVs were built at the company’s Chicago assembly plant between May 2010 to June 2017. Ford says the affected Ford Explorer SUVs are exposed to frequent full rear suspension articulation, which could increase the risk of a crash by diminishing steering control.
The stock is hovering near its 50-day moving average
On Monday, Ford stock settled at $9.96, close to its 50-day simple moving average, suggesting mixed bias in the short-term price trend. However, its 200-day moving average was far below its stock price at $9.14, reflecting a positive long-term price trend.
No major support level in Ford stock lies above $9.65, while a recent swing high of $10.20 is likely to act as immediate resistance to any upside price movement this week.