Why Ford Stock Looks Ready To Make Another Large Move Soon

Ford Motor Co. F shares are trading higher Thursday after Barclays maintained an Overweight rating on the stock and raised its price target from $18 to $23. Ford stock has been trading in a period of consolidation and may see a strong move in the coming days.

Ford was down 4.23% at $325.04 at time of publication.

See Also: Why Ford Shares Are Rising

Ford Daily Chart Analysis

• Shares recently broke out of what traders call an ascending triangle pattern and now looks to be in a period of sideways consolidation. A day of above average volume may push the stock on a large move in the future.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bullish sentiment, and each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) has been consolidating sideways for the past couple of months and now sits at 59. This shows there are more buyers than sellers in the stock and that buying pressure is outweighing selling pressure.

What’s Next For Ford?

Ford shares have been controlled by the bulls for a few months, and since breaking out of the ascending triangle pattern, nothing has changed. As the stock can stay above the moving averages and hold above the previous resistance level near the $16 mark, bulls will stay in control. Bulls are looking for this period of consolidation to end soon and for the stock to make another strong bullish move.

Bears are looking for the drop below the moving averages and the $16 level. If this happens, bears are then looking to see the stock drop below the higher low trendline for a possibly long term bearish trend to start.

Photo courtesy of Ford.