Stock of the day: Ford Motor Company
01 December 2023
Ford Company's recent market performance indeed presents a significant point of interest for investors and traders. The technical breakdown in October, marked by the price plunging below the crucial $11 support level, green on the chart, signaled a robust bearish momentum. This move initiated a sell-off, pushing the stock into a period of lateral movement throughout November.
The key observation here is the buyers' failed attempt to reclaim the $11 mark towards the end of November. This resistance level, once a support, now acts as a formidable barrier to any upward movement, emphasizing the ongoing bearish sentiment. The rejection at this level, combined with a downturn from the mid-term descending trendline (red), reinforces the negative outlook.
As long as Ford's stock price remains under the confluence of these two technical factors - the $11 resistance and the descending trendline - the bearish scenario remains dominant. Traders and investors will be closely monitoring the $9.6 support level (orange), representing the recent lows seen in October and November. A breach of this support could potentially lead to further downward pressure, making it a critical juncture to watch in the upcoming trading sessions.