Ford won a big prize — but its stock looks vulnerable. Here’s the level it needs to hold.
That’s even as MotorTrend named the company’s F-150 Lightning EV pickup its Truck of the Year.
It took guts for Ford to take the country’s best-selling vehicle — not just the best-selling pickup, but vehicle — and electrify it.
While EV adoption has grown significantly over the past several years, electrifying the F-150 was a bold move that’s paid off handsomely for Ford.
Although Ford stock didn’t make new lows in the fourth quarter and rallied more than 30% off its October low, the shares are looking vulnerable right now.
Trading Ford Stock
Daily chart of Ford stock.
Chart courtesy of TrendSpider.com
The ensuing rally was enough to send the shares to the declining 200-day moving average, which has proved to be stiff resistance. After bouncing around a bit over the past few weeks, Ford stock now sits at the bottom of its recent range.
It’s trying to hang onto the 50-day while staying above last week’s low and the 50% retracement — albeit, barely.
If the stock loses the $12.90 to $13 area, it opens up Ford stock to the 61.8% retracement near $12.50. That’s followed by the $11.70 to $11.90 area.
Should the selling pressure greatly intensify, it opens the door to another retest of the 200-month moving average.
On the upside, there are a few small levels to take note of, like $13.35 and $13.75. But the most meaningful level is the 200-day moving average.
For Ford stock to enjoy a sustained rally, it needs to clear this measure. If it can do so, the December and November highs sit up at $14.36 and $14.67, respectively. Above that opens up a potential move to $15.45.
Let’s not get ahead of our skis, though.
Instead, keep a close eye on $13 on the downside. Above this level is constructive. Below and Ford stock begins to weaken even more.