Intraday and swing scenarios based on price action and volume profile.
Is Ford Stock a Good Idea to Trade?
2022-11-22 • Updated
Ford stock probably isn’t the first thing that comes to your mind when you’re looking for trade ideas. However, can it be profitable to trade Ford? In this article, we’ll discuss if Ford’s earning report was good enough to consider for trading.
What do we know about Ford?
Ford is the second largest automaker in the US after General Motors and the fifth largest in the world after Toyota, Volkswagen, Hyundai, and General Motors in terms of vehicle production. This week Ford’s earning report positively surprised traders.
How was the report?
On July 27, Ford published a better-than-expected earnings report. The company said its adjusted operating income more than tripled year-over-year to $3.7 billion as it delivered more of its most popular new products to customers. It also reiterated its previous guidance for the full year and said it would increase its quarterly dividend to 15 cents per share, the amount it paid before the Covid-19 pandemic.
In addition to better-than-expected second-quarter results, the company maintained full-year operating profit guidance of $11.5 billion to $12.5 billion. This means that Ford will have an operating profit of about $6 billion in the second half of the year. This is similar to the amount earned in the first half of the year.
“We’re moving with purpose and speed into the most promising period for growth in Ford’s history,” said CEO Jim Farley. “We’re giving customers great experiences and value, improving our profitability and making Ford the next generation transportation leader.”
Ford’s stock price jumped almost 7% in premarket after gaining 5.2% on the day after the release. Now the price is still keeping a relatively high level. Currently it’s consolidating within a kind of pennant. If it rises above $16, the uptrend will continue, up to the resistance level that 200-MA formed at $16.65. In case of falling, it can reach the last nearest level of $15. The next support will be around $13.85 (100-day MA).
What can influence Ford stock now?
The world situation in the automobile production industry isn’t glittering. There appears to be pent-up demand for cars after supply chain issues such as semiconductor shortages have held back global car production lately.
Still, lately Ford has announced a series of battery procurement steps to reach its ambitious goal of 600,000 electric vehicles a year by 2023 and more than 2 million electric vehicles a year by 2026.
So, we suppose it would be interesting to see how such a giant as Ford will behave in this world’s situation.
How to trade FORD stock with FBS?
2. Learn how to trade on earnings reports.
Corrective Bearish Scenario: Sells below 38680 with TP1: 38560, TP2: 38500, TP3: 38432 Continuation Bullish Scenario: Buys above 38816 with TP: 39000
Bullish Scenario: Buy between 17515 and 17600 with TP1: 17681; TP2: 17720 intraday, and TP3: 17750 / 18000 in extension. Bearish Scenario in case of breaking the buying zone: Sell below 17500 with TP1: 17469; TP2: 17421, and TP3: 17358 in extension.
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