Ford's Stock Looks To Be Breaking Out Of A Pattern And Reversing

Ford Motor Company (NYSE: F) shares are trading higher after the company announced it spent $250 million to expand its new factory. The new factory will produce the battery-powered F-150 Lightning to tap into the demand surge for electric vehicles.

Ford was up 1.36% at $13.40 at market close Thursday.

Ford Daily Chart Analysis

• The stock looks to be breaking out of what technical traders call a falling wedge pattern where the stock saw a push above resistance.
• The price was slowly falling and being condensed between narrowing highs and lows until the price was able to break above resistance. The good news announcement may have been the catalyst for the stock to see a breakout.
• The stock trades below the 50-day moving average (green) but above the 200-day moving average (blue), indicating the stock could still be facing a period of consolidation despite the breakout.
• The 50-day moving average may hold as a place of resistance, while the 200-day moving average is somewhere the stock may find support.
• The Relative Strength Index (RSI) has been trending higher the past few days and now sits at 54. This shows that there have been more buyers moving into the stock the past few days.

What’s Next For Ford?

Bullish traders are looking to see the stock continue to break out and move higher. Then eventually the stock will cool off and bulls would like to see a period of consolidation for possible further bullish moves.

Bearish traders are looking for the stock to cool off as soon as possible and start to fall back toward the support of the pattern. If the stock fell below the pattern support it could be ready to see a further bearish push.

Photo: Courtesy Ford Co.