Shares moved higher in after-hours trading on Wednesday and in premarket trading on Thursday due to the results, but Ford stock is now having trouble pushing through a key technical level.
At one point, Ford stock was up almost 7%, but it has since faded from those highs.
In regards to Ford, the automaker delivered a surprise profit in the quarter and issued a bullish outlook for the rest of the year.
With that type of guidance, one would think shares would be up toward the session high, but that’s not what we’re seeing. Let’s look at the charts.
Trading Ford Stock
Last week, shares opened below the 21-week moving average, which had been support for quite some time.
While Ford stock rallied hard off the lows in that session, it wasn’t able to reclaim the 21-week moving average. However, it did so the next day and held that measure until it reported earnings.
Gapping higher now, shares reclaimed the 10-day and 21-day moving averages in the process.
However, it’s struggling with the 50-day moving average after being rejected by its daily VWAP measure. Unfortunately, that throws a wrench into the bulls’ technical plans. On the plus side, we now have some levels to measure against.
I would love to see Ford stock close above the 50-day moving average, keeping a test of that VWAP measure in play. Above the post-earnings high (and thus the VWAP reading) will open the door to $15, then to the highs near $16.50.
Above $16.50 and the 261.8% extension may eventually be in play sometime in the second half of 2021.
On the downside, look for a move below Ford’s post-earnings low. That could put the 10-day and 21-day moving averages back in play, followed by a gap-fill down toward $14.
Below that and the 21-week moving average could be back on the table.
Here’s the bottom line: See if Ford can maintain its post-earnings low on the downside and close above the 50-day moving average on the upside.