• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Ford Shares Should Get in Gear as Year Progresses

Weakness in the automaker's price could be short-lived.
By BRUCE KAMICH
Apr 29, 2021 | 07:39 AM EDT
Stocks quotes in this article: F

Companies aren't getting credit for putting up great results this earnings season, Jim Cramer told his "Mad Money" viewers Wednesday. That was the case with Ford Motor (F) Wednesday as shares dipped after the automaker slashed forecasts in response to the ongoing chip shortage.

In his first Executive Decision segment Wednesday night, Cramer spoke with Jim Farley, CEO of Ford, who said Ford is on the right path forward. As for the chip shortage, Farley said initial estimates predicted the shortfall would affect between 10% and 20% of Ford's production. Farley expects the second quarter will be the trough and he's optimistic for the second half of the year.

Newer vehicles continue to drive the momentum at Ford, Farley added. Its new electric Mustang Mach-e is completely sold out, he said.

Let's check on the charts and indicators of Ford, which is a holding of Cramer's Action Alerts PLUS charitable trust, and received an upgrade to buy Thursday from TheStreet's Quant Ratings service.

In this daily bar chart of F, below, we can see that prices have risen the past 12 months. F tested the rising 50-day moving average line earlier this month and could do so again Thursday morning. Prices remain comfortably above the rising 200-day moving average line. The On-Balance-Volume (OBV) line has largely moved sideways this calendar year, but a move to a new high is not far off. The Moving Average Convergence Divergence (MACD) oscillator just moved below the zero line for a sell signal but it may not need much of a price rally to reverse to the upside.

In this weekly Japanese candlestick chart of F, below, we see a mixed picture. Prices are in a longer-term uptrend above the rising 40-week moving average line. Notice the large lower shadow the other week, telling us that traders rejected the lows. The weekly OBV line shows a dip in March and April, but that might be a temporary phenomenon. The weekly MACD oscillator is crossing to the downside for a take profit sell signal and not an outright sell message.

In this daily Point and Figure chart of F, below, we can see a lot of price history. Prices have reached a price target of $13.25 but the trade at $13.50 in March (look for the "3" on the chart) is an important upside breakout in my opinion.

In this weekly Point and Figure chart of F, below, we can see a potential longer-term price objective in the $23-$24 area.

Bottom line strategy: The price of F could dip toward $12 this Thursday morning but the move may be short-lived. A higher close today would not be a big surprise as markets are forward-looking. I would recommend buying short-term price weakness, risking a close below $11. The $24 area is our price target for later in 2021.

(F is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long F.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Automotive | Transportation | Mad Money | Executive Interview | Real Money | Electric Vehicles

More from Stocks

Warning: Watch for Bull Trap

James "Rev Shark" DePorre
Jun 30, 2022 4:32 PM EDT

After an ugly day of bear market trading, beware of what could hide ahead on Friday.

For This REIT It's All About That Base

Bruce Kamich
Jun 30, 2022 4:10 PM EDT

We're checking the charts and indicators on Ventas, owner of senior housing and medical facilities.

This ETF Boasts 'Inflation Protection,' but Will It Rise to the Occasion?

Mark Abssy
Jun 30, 2022 3:26 PM EDT

The Ionic Inflation Protection exchange-traded fund, the latest such ETF to hit the market, offers direct exposure to the consumer price index.

Want to Save Your Retirement Fund? Tune Out the Talking Heads

Jim Collins
Jun 30, 2022 3:14 PM EDT

The first half of this year has been ugly. But we could have seen what would happen to Netflix, Tesla and Meta...

National Health Investors Is Aging Well as It Emerges From a Base Formation

Bruce Kamich
Jun 30, 2022 2:16 PM EDT

Buyers of the shares are becoming more aggressive.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:59 PM EDT PAUL PRICE

    Very good quarterly numbers from Bassett Furniture (BSET)

    Bassett Furniture (BSET) blew right through analys...
  • 04:41 PM EDT PAUL PRICE

    First Half Results - Putrid Second Half Results - Likely to Be Much Better

    It's great that we're done with June. 2022 marked...
  • 04:51 PM EDT PAUL PRICE

    We Should Be in for Better Starting Soon

    Window dressing Thursday, the last day of the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login