Going by return over the last 12 to 18 months, these two electric vehicle makers have widely outperformed most stocks, not just Ford. They have been slipping lately, though.
Ford, however, has been one of the strongest auto stocks in recent trading, barely flinching from its 2021 highs.
Let's look at the charts.
While high-growth and EV stocks have been hammered lately, Ford stock has barely wavered. Shares continue to find support at the 10-day and 21-day moving averages, even though momentum appears to be waning a bit.
The stock hit a new multi-year high last week, topping at $13.62.
Since pushing through the 161.8% extension, Ford stock has had trouble maintaining its bullish momentum. Now trading within last week’s range, short-term traders are curious to see which way the stock tips.
If the bulls take control, see if they can drive the stock north of the 161.8% extension. Above $13.05 and last week’s high is in play. A push above it could help kickstart a move toward $15.
Near $15 and the stock finds the two-times range extension.
On the downside, a break of last week’s low at $12.22 puts our first support major zone in play.
That comes into play near the 10-week and 50-day moving averages. This area hasn’t been tested since early January and ultimately helped propel Ford stock significantly higher.
If shares break below this zone, it puts the second support level in play, currently near $10.50. Not only has this been a notable level over the years, but it’s roughly where the 100-day and 21-week moving averages come into play at the moment.
These moving averages have been solid support since summer and I would expect them to be support upon the first test, should Ford dip this low.
Until proven otherwise, Ford stock is a buy-the-dip candidate, at least until the trend fails.