Intraday rejection could further boost sales
The bullish forecast for Ford stock price is barely suspended on Tuesday, despite a massive attempt to close the bullish gap on the daily chart. The 0.16% rise in Ford’s stock price continues to keep recovery hopes alive, but the rejection to yesterday’s high makes it a daunting task for the bulls.
Monday’s 1.53% gain added to Friday’s slight rise after the company signed an agreement to acquire Lithium from Lake Resources’ Kachi project in Argentina.
The deal was a positive trigger, as rising costs of industrial metals used in the automotive industry push automakers to seek steady supplies of lithium, cobalt and nickel directly from the mines. This agreement will allow Ford to obtain lithium via direct mining methods, which use fewer earth resources than conventional mining. Ford is looking to buy 25,000 tons of white metal a year from Lake Kachi production.
However, demand for these stocks dried up on Tuesday as markets weighed the impact of rising headline consumer inflation, which experts said could hurt demand for luxury goods such as cars. Ford stock price forecasts were hit hard last week by a downward revision by Barclays from overweight to equal weight, with price targets lowered from $23 to $17.
Ford Stock Price Forecast
Rejection of 15.69 resistance creates a potential slide to retest support at 14.82 (4th October high and 11th April low). A break of this support level opens the way for the bears to target the pivot at 13.70 (24th September 2021 low). Below this area, additional support levels are seen at 12.79 (21st September 2021 low) and the 19th May 2021 low at 12.01.
On the other hand, a break of the 15.69 resistance allows the 16.49 barrier to focus, being the previous lows of October 29, 2021 and March 31, 2022. Above this level, a advance targets the February 25 and March 29, 2022 highs at 17.82. . 18.95 appears to be an important barrier to the north, being the support that held prices above this price mark between November 8, 2021 and February 3, 2022. 20.69 only becomes a viable target if the bulls breach the resistance at 18.95.
Ford: daily chart
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