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Can Ford Stock Rev Up to New All-Time Highs This Year?

Ford stock is erupting higher on Tuesday on news it will increase the production of its electric F-150 Lightning pickup. Here's how to trade it now.

Ford  (F) - Get Ford Motor Company Report stock is getting another upside burst on Tuesday, with shares up over 10% on the day.

That comes after yesterday’s bullish explosion for Tesla  (TSLA) - Get Tesla Inc Report, where shares rallied 13.5% on Monday following better-than-expected fourth-quarter delivery results.

So what’s got Ford stock revving its engine?

The automaker said it plans to nearly double production of its all-electric F-150 Lightning pickup.

When all the rage is about electric vehicles, it’s good when a company has bullish news regarding its EV products.

For Ford, the company previously announced it would stop taking pre-orders on the electric pickup due to high demand.

Now it plans to up production to get through that backlog even faster.

With the news, shares are hitting multi-year highs. Let’s look at the chart.

Trading Ford Stock

Daily chart of Ford stock.

Daily chart of Ford stock.

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Readers learned on Dec. 27 that Ford stock was breaking out — again — and had more potential upside on the horizon.

Specifically, we flagged the breakout over $20.50, arguing that if Ford could rally through the $21.25 area, then the $23 mark could be in play next.

While that was a big move, it’s where the 161.8% extension from the current trading range came into play, along with the 261.8% extension from the longer-term trading range.

Well, the extensions came into play within 5 cents of each other, which is close enough for me.

From here though, Ford stock isn’t slowing down one bit. Shares exploded through the $23 level and have continued to chug higher.

That has me looking at $23 and the 8- and 10-day moving averages as downside support for when the stock takes a break.

On the upside, it has me looking at the $25 level, followed by the $25.40 to $25.50 area, where Ford stock will find the 261.8% extension of the current range.

On an unadjusted basis, Ford stock has quite a ways to go before hitting new all-time highs. It would need to clear $37.41 to do so. If we adjust for the dividend though, Ford stock is already at new highs.

Regardless of where it is versus its prior highs, this is the way I will be trading Ford moving forward. 

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