Shares of Ford (F) have rallied nicely in the past few weeks, but they're not getting the spark that investors were hoping for.
That’s even as MotorTrend named the company’s F-150 Lightning EV pickup its Truck of the Year.
It took guts for Ford to take the country’s best-selling vehicle — not just the best-selling pickup, but vehicle — and electrify it.
While EV adoption has grown significantly over the past several years, electrifying the F-150 was a bold move that’s paid off handsomely for Ford.
That said, EV stocks could really use a charge. Lucid Group (LCID), Tesla (TSLA) and others continue to tumble and hit 52-week lows.
Although Ford stock didn’t make new lows in the fourth quarter and rallied more than 30% off its October low, the shares are looking vulnerable right now.
Trading Ford Stock
Chart courtesy of TrendSpider.com
Ford stock put together a beautiful double bottom in September and October, finding support at the 200-month moving average near $11.25.
The ensuing rally was enough to send the shares to the declining 200-day moving average, which has proved to be stiff resistance. After bouncing around a bit over the past few weeks, Ford stock now sits at the bottom of its recent range.
It’s trying to hang onto the 50-day while staying above last week’s low and the 50% retracement — albeit, barely.
If the stock loses the $12.90 to $13 area, it opens up Ford stock to the 61.8% retracement near $12.50. That’s followed by the $11.70 to $11.90 area.
Should the selling pressure greatly intensify, it opens the door to another retest of the 200-month moving average.
On the upside, there are a few small levels to take note of, like $13.35 and $13.75. But the most meaningful level is the 200-day moving average.
For Ford stock to enjoy a sustained rally, it needs to clear this measure. If it can do so, the December and November highs sit up at $14.36 and $14.67, respectively. Above that opens up a potential move to $15.45.
Let’s not get ahead of our skis, though.
Instead, keep a close eye on $13 on the downside. Above this level is constructive. Below and Ford stock begins to weaken even more.
