Monday, 22 May 2017

F - Fields gets the kick

Whilst the main market closed moderately higher, there was notable strength in Ford Motors (F), which settled +2.1% at $11.10. Things will turn bullish with a break above declining trend/resistance, which in August will be around $12.00. Any price action >$12 will offer the $15s before year end.

F, daily

F, monthly


The rumbles were apparent last Friday, with a report that the Ford family were increasingly frustrated at the mid term stock price performance.

I said to a fellow trader at the time 'Firing fields would be a start'.... I didn't realise we would see it just a few days later.

Jim Hackett.. the new guy

What now for Ford?

Ford remains a hugely profitable and successful company. I'd refer anyone to go dig in their recent earnings report. Things are ticking along fine. The equity market though has little else than contempt for the company. Why? Well, the 'new normal' is one where growth is everything, even if it doesn't mean any profits (such as AMZN, NFLX, or TSLA).

The technicals

Declining trend/resistance from summer 2014 is currently around $12.50, and that is ticking lower by around 15/20 cents per month. A break above declining trend still seems an inevitable outcome.

I'm bullish Ford for the long term. The kick of Fields is a start, but the company now needs to focus on self-driving car technology, as that is where we're headed. If Ford can just tap 10% of the media attention that Tesla garners, Ford will eventually be in the $20s. If the latter, the implications for the broader market would be hugely bullish.

yours.. awaiting a 100% self driving car... probably due by 2020.