On Thursday it was down as much as 3.4% shortly after the open. It's now up a bit on the day. That’s after the bulls finally got a strong open and a continuation rally in the broader market.
The gap-down action in Ford also follows yesterday’s painful move, where the stock lost 7.9% after Tuesday’s 3.2% drop.
In late December, the bullish catalysts were piling up and we called for the stock to break out even further.
After this week’s dip, let’s take another look.
Trading Ford Stock
Despite today’s modest rebound, Ford stock is still down for the week, by more than 10%.
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The move comes after the stock had rallied in the previous four weeks and as it works on its fifth straight monthly gain.
When I look at the chart, I see some positives and some negatives.
The bad news first: Clearly, Ford has broken below a number of short-term moving averages. Worse, it’s struggling to regain the 21-day moving average and the $23 level.
While the $23 level was a notable upside extension area, the stock’s inability to reclaim it does create questions about how much strength the buy-the-dip crowd really has.
Specifically, it makes me wonder: “Does Ford stock need to pull back a bit more?”
Back above $23 and the $23.40 to $23.50 zone is in play next, which is followed by some of the short-term moving averages on the four-hour chart.
For investors who want to ignore the four-chart, they can look for a test of the 10-day moving average, then the $25 mark.
With this morning’s move lower, Ford filled the gap from Jan. 3 at $21.88. If it takes out that mark again, the daily VWAP measure and the 50-day moving average could be in play.
That’s the area I have my eye on if Ford really does “need to pull back a bit more.”
Otherwise, let's see whether it can reclaim some of these upside levels. So far, today's bounce is leaving some questions marks, but we'll see how it closes.
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