Auto shares like Ford (F) made a stellar transfer off the lows. The truth is, Ford inventory rallied 57.2% off its 2022 low to final month’s excessive.
Although Tesla (TSLA) appears to get all the eye, the transfer by Ford really outpaced Tesla’s acquire of 52.1%.
It helps that Ford inventory has a low valuation and not too long ago reinstated its dividend. Its push towards EVs additionally helps, because it not too long ago electrified its F-150 and continues to see sturdy demand.
It hasn’t been utterly easy crusing although, because the automaker navigates world macro points and has even needed to slash jobs along the way.
Nevertheless, the dangerous information hasn’t deterred buyers, who bid the inventory greater in late July following better-than-expected earnings and robust guidance.
That was sufficient to calm any actual issues among the many bulls, however will that stay the case going ahead because the bear market in equities begins to roar as soon as once more?
When to Purchase Ford Stock
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After the corporate reported earnings, I took a take a look at Ford’s charts and mapped out the $16 to $17 space as a attainable vacation spot, noting the significant resistance in this area.
Ford inventory topped out at $16.68, failing to push by way of the 200-day transferring common. Earlier than it went on that rally, it had struggled with $16 and after being rejected, it once more struggled with the $16 degree.
Going ahead, that’s now a degree we have to control as attainable resistance. That’s additionally round the place the 200-day transferring common would come again in play if Ford inventory had been to start rallying.
Ford inventory has been discovering patrons on the dips, however general, shares are down three weeks in a row. It’s now under its short-term transferring averages — the 10-day and 21-day — however continues to carry its intermediate-term transferring averages, just like the 10-week and 50-day.
So the place will help come into play?
Maybe Ford inventory will bounce earlier than this, however I’ve my eye on the $14 to $14.35 space. On this zone, we discover the 38.2% retracement of the present rally, in addition to the 50-day transferring common and a big breakout space.
If Ford shares dip to this degree, patrons have a pretty danger/reward setup, as this zone must be strong help. If it’s not help, merchants will know very quickly and may restrict their losses.
In any other case, let’s see if this zone holds as help and may put $16-plus again in play.
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