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Ford Motor Company F gap of 1.37% to start Thursday’s trading session after a volatile session on Wednesday that caused the stock to slip 2% intraday before closing flat.
The legacy-turning-EV carmaker has announced that it will increase its total investment in Ford’s Halewood Plant in Merseyside, UK by £125 ($152.8 million US) to aid its transformation into the EV space. This puts Ford’s total investment in the facility at £380 million.
See also: Elon Musk Can’t Help But Praise Tesla Rival Ford – Here’s Why
“Our vision in Europe is to build a thriving business, by expanding leadership in commercial vehicles and by electrifying our range of vehicles,” said Kieran Cahillvice-president of Ford’s European Industrial Operations.
Ford achieved an EV milestone on Wednesday, announcing that it has built its 150,000th Mustang Mach-E. The news was met with congratulations from Tesla, Inc CEO CEO Elon Muskwho is the EV company that currently dominates the US EV market share
As Ford continues to increase its EV offerings and ramp up production, its current 7% market share is sure to grow. From a technical perspective, Ford has settled into a bull flag pattern on the weekly chart, which could send the stock soaring more than 30% if the market cooperates.
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The Ford Chart: On the daily chart, Ford has been trading within a falling channel pattern since Nov. 11, which formed just below the 200-day simple moving average (SMA). A falling channel pattern is considered bearish until a stock breaks out of the pattern’s upper downward trendline on higher-than-average volume, which Ford tried to do on Thursday but failed.
- On the weekly chart, the falling channel, when paired with Ford’s 31% surge between October 11 and November 11, set the stock in a bull flag pattern. When a bullish pattern forms over a large time frame, such as a weekly chart, the move may take several weeks to play out but may offer a higher degree of predictability.
- On Thursday, when Ford tried to break out of the falling channel pattern and bull flag, the stock rejected the 200-day SMA. The 200-day SMA is an important bellwether indicator and a stock is unlikely to break out of the area on the first attempt. If Ford breaks away from bullish patterns and retraces the 200-day SMA as support, the stock will enter a potential bull cycle.
- If Ford closes the trading session below the 200-day SMA, the stock will print a shooting star candlestick, which could indicate lower prices are coming on Friday. If buyers come later in the trading session and Ford closes near its high price, higher prices and confirmation of a bull flag break could be on the horizon.
- Ford has resistance above at $14.34 and $15.53 and support below at $12.79 and $11.99.
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