The stock of the Ford Motor Company (NYSE: F) has been in a freefall since its September peak. Since June 2022, most of the Ford stock price action has occurred within a broad range, which shows a high timeframe accumulation. Despite a prolonged sideways price action, there seem to be no signs of any major breakout in the coming days.
While a sideways price action might be exhausting for the long-term holder, the short-term traders can still capitalize on it. Ford shares hit their 52-week highs of $15.4 in July 2023 and have been in an intense downtrend since then. The Q2 earnings of the automaker appear to have intensified the downtrend.
The stock of one of the oldest automobile manufacturers, Ford Motor Co., has been on a losing streak for the past five trading sessions. The price has also slid below the 50-day EMA, which shows that the bears are in the driving seat on the daily chart.
On Thursday, the stock opened at $11.94 and slid to $11.87 in the opening hours. This translated into a 0.84% decline from its previous close. On a daily timeframe, Ford share price is down 4.51%, showing a constant sell-off. On a monthly timeframe, the price has fallen 4.95% as the stocks face headwinds due to soaring bond yield and the strengthening dollar.
According to the most recent Ford stock news, the company’s investor for its plant in Saarlouis, Germany, has pulled out of the non-binding deal. This has once again raised the tensions between the site worker and the company. The worker union has also vowed to ‘send a signal’ as uncertainty looms over their jobs.
Ford Motor Co. has already moved the production of its Next Generation EV to a site in Spain from its German Plant. The latest development comes as the company is already in negotiations with the United Workers Union (UAW) in the United States, who have been on strike for the past 21 days.
According to CNN, out of the 23 investment analysts that cover the Ford stock, 8 hold a ‘buy’ rating. 11 analysts have given the stock a ‘hold’ rating, suggesting a somewhat neutral stance. Considering the overall targets, a median price target of $14.8 is achieved, which is around 19% above the current price level.
The high-end estimate by the analysts is $24, while the lowest estimate is $11. The technical analysis aligns more with the lowest target as there is a strong likelihood of the price retesting the $11 level due to multiple confluences. This means an 8% correction from the current price of $10.9.
The monthly chart of Ford shares reveals a bigger picture with key information for the long-term holders. There is massive resistance above the $17.65 level, which has resulted in brutal rejections in the past two decades. It’s quite extraordinary how this level is still relevant even after 20 years.
After a fakeout on the monthly chart in 2021, the stock tanked very hard. For the last two years, the price has been consolidating on a monthly timeframe within a very narrow range. A breakout from this range will most likely result in a massive move in one direction.
To target a new all-time high, the stock needs to gain strength above the $17.65 level on a monthly chart. Due to the recent surge in the EV trend, Tesla has established its place as a market leader in the electric vehicles industry. Therefore, investors prefer Tesla stock over Ford, considering the returns of the past couple of years.
For a more near-term outlook, let us analyze the NYSE: F chart on a daily timeframe. Technical analysis reveals a trading range of $10.9-$14 in which the stock has been changing hands since June 2022, with a few failed breakout attempts. The top and bottom of this range are acting as a resistance and support level for the stock.
The short-term Ford Stock price forecast is looking bearish as the stock seems to be heading for a retest of the bottom of the accumulation range. This retest will decide the price action of the stock in the coming months. If the S&P 500 corrects more from its current level, Ford may break down below the range lows, which will be catastrophic for the price action.
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This post was last modified on Oct 05, 2023, 17:00 BST 17:00