Thursday, 26 January 2017

F - post earnings depression

Whilst the main market saw a day of moderate chop, there was significant weakness in Ford Motor Co' (F), which settled -3.3% @ $12.37. Price action remains pretty volatile, as Mr Market is waiting for a breakout of the downward trend that stretches back to summer 2014.

F, daily

F, monthly


re: earnings. As already announced a few weeks ago - when the stock went ex-div', Ford earnings were never going to be great for Q4/2016.

Today, it was a case of 'reasonable earnings... but not great'. That was not enough to inspire any buyers, and the stock rapidly imploded in early morning. Short term rising trend was held though, and things only turn provisionally bearish with price action <$12.20... where the 50 and 200 day MAs are lurking.

The bigger picture

Seen on the giant monthly cycle, Ford has been in a broad downward trend since summer 2014.. cooling from the $16s to the 11s. Current declining trend/resistance is around $13.00.

Any price action >13.10 will be decisive enough to break the 2.5yr downward trend, and offer an initial run to the 13.40/80 zone. A test of multi-year resistance of the $16 threshold seems probable this year.

Things turn hyper-bullish with a monthly close >$16. For now.. that is a long way up, but considering the broader market.. does seem a valid target.

yours... can't drive.