Ford is dividing its business into EVs and gasoline cars, and the move helped jolt the stock higher. Here are the new levels to know.
Shares of Ford (F) – Get Ford Motor Company Report haven’t escaped the vortex of volatility that’s wreaked havoc on the stock market this year.
The stock is down a third from the high, which was hit on Jan. 13.
On Wednesday, though, the stock received an upside jolt. The Dearborn, Mich., auto giant’s shares were recently up about 5% and have been up almost 8% on the news it will separate its electric vehicle and gasoline car businesses.
For the bulls, it’s been a frustrating series of events.
On Feb. 18 Ford stock rallied on reports it was considering a spinoff for its EV business.
About a week later, the stock faded on news from the company saying that that wasn’t the case. Ford said, “We have no plans to spin off our battery electric-vehicle business or our traditional ICE business.”
Well, we’re just nine days later and the automaker is going to “split its operations into two separate but complementary divisions.”
What is the market trying to say about Ford stock? Let’s look at the charts.
Trading Ford Stock
Daily chart of Ford stock.
Chart courtesy of TrendSpider.com
The charts highlight both positives and negatives with Ford stock.
The good? While the shares gapped below a key level on the chart — on that nasty Feb. 24 session — they forcefully reclaimed the 200-day moving average and the $16.45 breakout level.
The bad is pretty clear, too. The stock struggled to reclaim the weekly VWAP measure and the declining 10-day moving average. Even today, the 21-day is acting as resistance and Ford is still struggling with the 10-day.
On Tuesday, Ford stock held the 200-day and $16.45 breakout level, which is constructive, but the charts are getting a little murkier as short-term and long-term measures collide.
On the upside, keep an eye on the 21-day moving average. If Ford stock can take out that measure, it puts prior range support in play at $19.
Above $19 opens the door to the 50-day moving average and the gap-fill at $19.87.
On the downside, $17.50 is pretty notable. Losing this level would put Ford stock below the weekly VWAP measure and the 10-day.
That opens the door to the must-hold critical area of $16.50 and the 200-day. Below these marks puts the 2021 low back on the table at $15.96.
