Ford Stock Finds Support After Breakout: A Technical Analysis

Ford Motor Co. F reported better-than-expected earnings Wednesday, with earnings per share of 13 cents, beating the Street estimate calling for a loss of 10 cents per share.

Ford posted second-quarter revenue of $26.8 billion, which beat the estimate of $23.84 billion.

Ford stock was up 3.28% at $14.32 at last check Thursday. 

Ford Daily Chart Analysis

• Ford shares just broke out of an ascending triangle pattern and are now looking to test old resistance to see if they can find support.
• The stock crossed above the 50-day moving average (green), and trades above the 200-day moving average (blue), indicating the sentiment is likely turning bullish.
• Each of these moving averages may hod as a potential area of support.

Key Ford Levels To Watch

• The stock broke out of the ascending triangle pattern, looks to have bounced at old resistance near the $13 level and could be heading higher.
• The higher low trendline will continue moving higher and the stock may continue to hold this trendline as support.
• The Relative Strength Index (RSI) recently crossed above the middle at 50 and now sits at the 55 level. This indicates that there has been more buyers entering the stock lately and now there are more buyers than sellers.

What’s Next For Ford?

Bullish traders would like to see the stock continue to trade along the higher low trendline. If the stock can stay above this trendline, bulls will continue to control the stock. Bulls want to see the stock continue to stay above the moving averages as well to maintain bullish sentiment.

Bearish traders would like to see the stock fall below the higher low trendline. If the stock falls below the trendline and can stay below it, the stock may be ready to see a further bearish push. Bears want to see the stock fall below the moving averages for a potential change in trend and sentiment.

Photo: courtesy of Ford.