Key Takeaways
- Ford shares jumped Tuesday after the automaker reported a 14% improve in U.S. gross sales within the second quarter.
- The value broke out from an ascending triangle on above-average quantity, a chart sample that alerts a continuation of the inventory’s latest uptrend.
- Traders ought to watch main overhead ranges on Ford’s chart round $11.50, $13 and $13.60, whereas additionally monitoring a vital help degree close to $10.30.
Ford (F) shares jumped Tuesday after the automaker reported an enormous soar in U.S. gross sales and a rise in market share within the second quarter.
The corporate stated that gross sales rose 14.2% within the second quarter versus a yr in the past, as demand for pickup vehicles and SUVs surged. Ford estimated that its market share grew 1.8 proportion factors from the primary quarter to 14.3%.
The stable numbers come amid issues about attainable declines in new automotive gross sales over the approaching months as producers incorporate tariff prices into automobile costs. When Ford launched its first-quarter monetary ends in Could, the corporate stated it will not present full-year earnings steering amid uncertainty in regards to the influence of tariffs.
Ford shares have gained almost 15% because the begin of the yr, handily outpacing the S&P 500’s 5% return over the identical interval. The inventory rose 4.6% to $11.35 on Tuesday.
Under, we take a better have a look at Ford’s chart and use technical evaluation to level out worth ranges that buyers will probably be watching.
Ascending Triangle Breakout
After reclaiming the 200-day transferring common in mid-Could, Ford shares consolidated inside an ascending triangle, a chart sample that alerts a continuation of the inventory’s latest uptrend.
Certainly, the value staged a decisive breakout above the sample’s higher trendline in Tuesday’s buying and selling session on above-average quantity. In the meantime, the relative energy index confirms bullish momentum, however stays beneath overbought ranges, offering the shares with enough space for additional upside.
In one other win for the bulls, the 50-day MA crossed above the 200-day MA late final month to type a golden cross, a bullish chart sign that factors to the start of a brand new uptrend.
Let’s establish three main areas on Ford’s chart price watching if the shares proceed monitoring greater and in addition level out a help degree to observe throughout future pullbacks within the inventory.
Overhead Areas Price Watching
Additional shopping for might see the shares check overhead resistance round $11.50. The shares could face promoting strain on this space close to the Could 2024 trough, which additionally intently aligns with a sequence of peaks that fashioned on the chart between August and November final yr.
The following greater space to look at lies at $13. This location could present resistance close to minor peaks that developed on the chart final yr in March and April.
A detailed above this space might drive a transfer towards $13.60. Traders who purchased the inventory at decrease ranges could look to lock in earnings on this area close to a spread of costs located just under the April 2024 excessive and an space that preceded final July’s outstanding inventory hole.
This location additionally sits in the identical neighborhood as a projected bars sample bullish goal that takes the inventory’s transfer greater that preceded the ascending triangle and repositions it from the sample’s breakout level.
Essential Assist Stage to Monitor
Throughout pullbacks in Ford’s inventory, buyers ought to regulate the $10.30 degree. This area might develop into a buying and selling ground close to the 2 key transferring averages and a spread of peaks and troughs that emerged on the chart between September and March.
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