• Sun. Dec 4th, 2022

Ford Motor Credit Company (F) – Why Ford shares look set to rebound despite a massive vehicle recall

ByJanice K. Merrill

Sep 1, 2022

Ford Motor Co. F fell 0.85% on Thursday to start the trading day and slid a further 2.12% on the open before hitting a slew of buyers who pushed the stock higher to work higher. impression of a dragonfly doji candlestick on the daily chart.

The stock seemed to ignore news that Ford had issued a recall of nearly 200,000 2015-2017 Ford Expeditions and Lincoln Navigators due to a fire hazard.

A dragonfly doji candlestick forms when a red or green candlestick prints with a long lower wick and a small to almost non-existent body, indicating that the open and close prices are near flats.

A dragonfly doji candlestick, when in a downtrend, may indicate that an upward reversal is on the horizon. This is a lagging indicator because the next candle on the time frame must print before the pattern can be validated.

A dragonfly doji candlestick does not necessarily mean that a new uptrend will occur, only that a bounce higher is likely imminent.

Candlestick patterns can be used to indicate the future price direction of a stock. Candlestick patterns are especially useful for technical traders when combined with other indicators such as broader patterns, trading volume, relative strength index (RSI) and divergences between RSI and the chart. evolution of prices.

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The Ford chart: Ford began trading in a downtrend on August 16, when the stock attempted to regain the 200-day simple moving average (SMA) on the daily chart, but failed.

The most recent high low in the trend was formed on August 26 at $16.09 and the most recent confirmed low low was printed at $14.91 on August 12.

  • Thursday’s candlestick may suggest a rebound will occur on Friday, but the more likely scenario is that the stock will cap below the $16 mark. However, if the stock is able to charge above this level, or rebound and retrace only to reach a low above $14.78, the downtrend will be reversed.
  • The bulls want to see Ford regain the eight-day exponential moving average (EMA) as support, which will prevent the eight-day EMA from breaking below the bearish 21-day. If Ford continues to decline, the 50-day SMA will be an important area to hold above.
  • Ford has upper resistance at $15.51 and $16.45 and lower support at $14.34 and $12.79.

See also: Ford Motor Credit Company (F) – Here’s how much Princess Diana’s 1985 Ford Escort sold for at auction

Photo via Shutterstock.