Can Ford’s EV spin-off electrify the stock price?

Ford Stock (F) – Get Ford Motor Company report have not escaped the whirlwind of volatility that has ravaged the stock market this year.

The stock is down a third from its peak on January 13.

On Wednesday, however, the stock received a bullish jolt. Shares of the Dearborn, Mich., auto giant recently rose about 5% and rose nearly 8% following news that it would split its electric vehicle and car businesses gasoline.

For the bulls, it has been a frustrating series of events.

On February 18, Ford stock rallied on reports that it was considering a fallout for its electric vehicle business.

About a week later, the title faded after the company announced that was not the case. Ford said, “We have no plans to divest our battery electric vehicle business or our traditional ICE business.”

Well, it’s only nine days later and the automaker will “split its operations into two separate but complementary divisions.”

What is the market trying to say about Ford stocks? Let’s look at the charts.

Trading Ford Stocks

Ford stock daily chart.

The charts highlight both the positives and negatives of Ford stocks.

Good? While stocks were trading below a key level on the chart – in that bad session on Feb. 24 – they forcefully recovered the 200-day moving average and the breakout level of $16.45.

The bad is pretty clear too. The stock struggled to recover the weekly VWAP measure and the falling 10-day moving average. Even today, the 21 days acts as a resistance and Ford still struggles with the 10 days.

On Tuesday, Ford stock held the 200-day breakout level and $16.45, which is constructive, but the charts get a little murkier as the short and long-term metrics collide.

On the upside, keep an eye on the 21-day moving average. If Ford stock can remove this metric, it puts the previous range support at $19 into play.

Above $19 opens the door to the 50-day moving average and filling the gap at $19.87.

On the other hand, $17.50 is quite notable. Loss of this level would put Ford’s stock below the weekly VWAP measure and the 10-day.

This opens the door to the unavoidable critical zone of $16.50 and the 200 days. Below these marks, the 2021 Low Back is on the table at $15.96.

Karen J. Nelson