Ford Attempts To Recoup Losses Following General Motors Guidance Cut: The Bull, Bear Case

Ford Motor Co F traded slightly higher in the premarket session Wednesday after closing Tuesday’s session down over 3%.

The move lower on Tuesday came amid shares of General Motors Co GM falling over 4% after the latter announced first-quarter earnings and lowered its guidance for full-year 2023.

On Wednesday, Ford was attempting to recoup some of its losses, trading slightly higher in tandem with the general market, which was edging higher after Microsoft and Google parent Alphabet printed quarterly earnings beats and an increase in cloud revenue.

From a technical analysis perspective, Ford is trading in a downtrend, but if the stock can gather momentum to the upside and spike up above $12, the downtrend will be negated and an uptrend could be in the cards.

Also Of Interest: On Tuesday, Ford announced the reopening of the Book Depository building in central Detroit, a formerly derelict building in central Detroit. Read more here...

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The Ford Chart: Ford opened Wednesday's session with an inside bar pattern, which leans bearish because the stock was trading lower before forming the pattern. Traders and investors can watch for the stock to break up or down from Tuesday’s trading range on higher-than-average volume to gauge future direction.

• If Ford breaks up from Tuesday’s mother bar, bullish traders will want to see the stock rise above $12 to negate the downtrend. If that occurs, Ford will also regain the eight-day and 21-day exponential moving averages, which would give bullish traders more confidence going forward.
• Bearish traders want to see Ford break down from the mother bar, which could cause the stock to fall under the April 20 low of $11.55 and confirm the downtrend is intact. If that happens, the stock may find support at $11.17, and if the stock reverses from that area, a quadruple bottom pattern may form.
• Ford has resistance above at $11.99 and $12.79 and support below at $11.17 and the psychologically important $10 mark.

Read Next: Stellantis Joins Downsizing Bandwagon After GM, Ford; Eyes 3.5K Hourly US Jobs

Photo courtesy of Ford.