Ford Stock News and Forecast: F shares out of fashion despite positive sales growth
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- Ford stock is down 49% YTD.
- Ford reported a 32% increase in vehicle sales in June.
- F stock has sold off despite positive sales figures.
Ford (F) stock cannot seem to catch a break. Despite on Tuesday reporting a 32% YoY increase in vehicle sales in June, shares continued doing what they have done all year – sell off. At the time of writing just after Wednesday's opening bell, Ford stock is off another 1.5% at $11.03. So what gives?
Ford Stock News: Sales moving in the right direction or are they?
Ford management reported 152,262 sales in June. The figures were made up of mostly higher-margin models like the F-150 and Explorer. Electric vehicle figures also grew 77% YoY, now making up close to 3% of the total.
The reason analysts and banks are less enthused about the figures is that the supply chain crunch of 2021 brough those year ago figures down considerably, so beating them by a large margin seems to be more of a statistical trick than a true advancement. For instance, Ford's June sales figures were a little more than 1% off the May figures, and Ford's first half saw an 8% overall decline in unit sales.
For the first half of 2022, Ford sold about 916,000 vehicles, down from 997,000 in the first half of 2021. Ford's 8% decline, however, looks better than its industry's decline of 18% over the same period. It sure seems like the recession has already come for the auto industry.
Ford Stock Forecast: How much further can Ford fall?
Ford stock is down 49% year to date. From the weekly chart below, observers can see Ford stock taking an escalator down an invisible descending trend line since at least the end of January. The top of Ford's cluttered price channel is pent in by the 9-week moving average (blue). Thus far that average is descending at an even keel and shows no signs of giving up. The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) give no signs of a turnaround in the works.
It seems that though Ford stock is at support now, it may continue to drift until it finds the January 2021 support at $8.45. To break out of this price channel, Ford stock needs to break above the $12.45 resistance level. That price comes from June, and the $14 resistance area right above it comes from May. Above there stands resistance from April at $16.55, but again there are exactly zero catalysts for upward movement in this stock. A momentary bounce may procede from F shares touching the lower trend line.
Ford weekly chart
- Ford stock is down 49% YTD.
- Ford reported a 32% increase in vehicle sales in June.
- F stock has sold off despite positive sales figures.
Ford (F) stock cannot seem to catch a break. Despite on Tuesday reporting a 32% YoY increase in vehicle sales in June, shares continued doing what they have done all year – sell off. At the time of writing just after Wednesday's opening bell, Ford stock is off another 1.5% at $11.03. So what gives?
Ford Stock News: Sales moving in the right direction or are they?
Ford management reported 152,262 sales in June. The figures were made up of mostly higher-margin models like the F-150 and Explorer. Electric vehicle figures also grew 77% YoY, now making up close to 3% of the total.
The reason analysts and banks are less enthused about the figures is that the supply chain crunch of 2021 brough those year ago figures down considerably, so beating them by a large margin seems to be more of a statistical trick than a true advancement. For instance, Ford's June sales figures were a little more than 1% off the May figures, and Ford's first half saw an 8% overall decline in unit sales.
For the first half of 2022, Ford sold about 916,000 vehicles, down from 997,000 in the first half of 2021. Ford's 8% decline, however, looks better than its industry's decline of 18% over the same period. It sure seems like the recession has already come for the auto industry.
Ford Stock Forecast: How much further can Ford fall?
Ford stock is down 49% year to date. From the weekly chart below, observers can see Ford stock taking an escalator down an invisible descending trend line since at least the end of January. The top of Ford's cluttered price channel is pent in by the 9-week moving average (blue). Thus far that average is descending at an even keel and shows no signs of giving up. The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) give no signs of a turnaround in the works.
It seems that though Ford stock is at support now, it may continue to drift until it finds the January 2021 support at $8.45. To break out of this price channel, Ford stock needs to break above the $12.45 resistance level. That price comes from June, and the $14 resistance area right above it comes from May. Above there stands resistance from April at $16.55, but again there are exactly zero catalysts for upward movement in this stock. A momentary bounce may procede from F shares touching the lower trend line.
Ford weekly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.