Ford Motor Company’s (NYSE: F) turnaround story is one of the best stories of all time in our opinion. We think the stock is a healthy stock to own long run, however we do think it is due for a pullback here at some point. Now is looking like a better time than it has in the past. We suggested Ford (F) could take out previous 52-week highs back in October and November and it took some time but it did. This does not mean we will be right on a pullback here, but we are using the same applicable methods to dissect the probabilities for a pullback.
If we look at the chart, we can see the stock is starting to reach s0me indecision. Pullbacks are healthy because a stock that goes straight up without any selling generally tends to fall and fall hard. This likely won’t be the case with Ford Motors (F). We are anticipating a slow slide to the 50 day moving average; wherever the 50 day moving average will be on that day. Once it hits it, then we will reassess strengths to see if it is poised to continue upwards, consolidate sideways, or continue moving down. We are expecting it to continue upwards at this point in time – due to the fundamental strength – but time will only tell.
An important article came out today that we read that showed consumer credit had the biggest rise since 2008 in one month. A large component of this increase was in auto loans. We want to keep a close eye on this metric. It could be good news, but however, we do not want to see credit sales outpace growth and balloon again, giving life to the possibility of a slowdown hitting the auto industry again. However, for the time being pent up demand is at bare minimum going to cushion these affects and will be hidden for at least a couple more quarters we feel. Going forward though we’d like to see Ford Motor Company (NYSE: F) hit roughly $15.25 before continuing upward.
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- Ford Price Target Raised And Shares Poised To Continue Up (F)
- Why Is GM’s Stock Higher Than Ford’s? (GM, F) 1 of 2
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.