Key takeout
Ford(F) stock jumped Tuesday after cars reported increased U.S. sales and market share in the second quarter.
The company said it rose 14.2% in the second quarter a year ago as demand for pickup trucks and SUVs rose sharply. Ford estimated its market share increased by 1.8 percentage points from the first quarter to 14.3%.
As manufacturers incorporate tariff costs into vehicle prices, solid numbers will emerge amid concerns about possible declines in new car sales over the coming months. When Ford released its first quarter financial results in May, it said it would not provide full-year revenue guidance amid uncertainty regarding the impact of tariffs.
Ford’s shares have been earning almost 15% since the start of the year, outperforming the 5% return on the S&P 500 in the same period at an affordable price. Stocks rose 4.6% to $11.35 on Tuesday.
Below we take a closer look at Ford’s charts and use technical analysis to point out the price levels investors are seeing.
Rising Triangle Breakout
After collecting the 200-day moving average in mid-May, Ford will merge the stocks that are integrated in the ascending triangle. This is a chart pattern showing the continuation of the recent uptrends in stocks.
In fact, prices staged a decisive breakout above the top trendline of the pattern during Tuesday’s trading session at above average volume. Meanwhile, the relative strength index confirms bullish momentum, but is below the level that was bought.
In another Bulls victory, the 50-day MA formed a golden cross later last month, surpassing the 200-day MA. This is a bullish chart signal that marks the beginning of a new uptrend.
If your stocks continue to track higher, it’s worth watching three major areas of Ford’s charts, and point out the level of support you’ll monitor during future stock pullbacks.
Overhead area worth seeing
If you buy more, the stock’s overhead resistance may appear around $11.50. The shares could face sales pressure in this area near the trough in May 2024. This also closely coincides with the series of peaks that formed on the charts between August and November last year.
The next highest area to monitor is $13. This location could provide resistance near the minor peak, which evolved into the charts in March and April last year.
If you’re above this area you could move towards $13.60. Investors who have bought stocks at a lower level may try to lock in the region’s profits near the price range just below the April 2024 high and the prominent stock gap last July.
This location is in the same neighborhood as the bullish target of the predicted bar pattern that raises the movement of the stock ahead of the rising triangle and rearranges it from the breakout point of the pattern.
Important level of support for monitoring
During the pullback of Ford stocks, investors should pay attention to the $10.30 level. The area could be two important moving averages that appeared on the charts between September and March, as well as a trade floor near the peak and trough range.
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As of the date this article was written, the author does not own the above securities.
