The stock has continued to hold its own, even after a false breakout from a few weeks ago.
As Tesla (TSLA) - Get Tesla Inc Report remains in the EV spotlight — particularly with Chief Executive Elon Musk continuing to sell the stock — and as other EV stocks rotate through Wall Street’s focus, Ford has remained a staple since its booming rally from early September through early November.
In that stretch, the stock rallied in nine straight weeks and gained more than 60%.
Since then, though, it’s been mixed. The shares are up in just three of the past six weeks as Ford stock remains largely range-bound…until now.
Earlier this month, the automaker said it would stop taking reservations for its F-150 Lightning due to strong demand.
A day later a Real Money contributor noted that the stock remained bullish before the shares suddenly erupted 9.6% in a single session, sending the stock to its highest level in years.
Trading Ford Stock
That was an excellent call by Bruce Kamich, although Ford failed to hold onto the breakout.
Instead, it retreated back into its prior range between $19 support and $20.50 resistance.
Coming into this week, I was looking for one of two things: either a rotation over the $20.50 level or a pullback to the $19 level and the 50-day moving average.
In essence, we were looking for a buy-the-dip pullback or a rotation over resistance. So far, we’re getting the latter.
With the move, we also got a weekly-up rotation over last week’s high of $20.41. Now it’s got bulls looking at the $21.25 level, which is the 261.8% extension of Ford’s larger, multiyear range.
This extension halted the stock’s breakout earlier this month, although Ford stock did climb all the way to $21.49 — which is the next upside target if it’s able to clear $21.25.
If we can get a move over $21.50, it may have investors looking at the $23 level. Near that mark we find the 261.8% extension of the current range.
On the downside, let’s see if $20.50 can act as support rather than resistance. Further, let’s see if the 10-day moving average acts as support, too.