Don't Ignore This Chart!

Have You Driven Ford's Stock Price Lately?


Ford (F) announced earnings and they were well above the street estimates. I wondered if that would send the stock price rocketing up on a big bullish day today. Here is the chart after earnings.

A few positives showed up today. Ford moved up more than the indexes did. It moved above a downward trend line that has been violated and failed before. It is still below the 200 DMA and the SCTR ranking is a paltry 50% which means it's average at best right now. The MACD has a slight bit of positive divergence, but this doesn't look like a must own chart yet. The increasing volume over the last two days is interesting. We should get vehicle sales for July next week I think and that might be a better catalyst as Auto makers like Ford are in the Consumer Discretionary sector which has been holding up.

I received an email from my friendly neighbourhood Ford salesman yesterday. He had trucks for sale and wanted to know if I was interested in changing my ride. Always interested in what's happening in the car business so that sent me searching for vehicles. Timing was interesting with Ford on a trader's mind with the earnings announcements.

GM's chart profile is similar with an April high in place and a trend down and to the right from there.

With no leadership in either chart and the number of companies on the S&P 500 that are on a buy signal continuing to wither, I think investors can wait to buy the stock at a later date. That was my choice on the truck today too. 

Good trading,
Greg Schnell, CMT

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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