How Ford shares could really motor

by Alistair Strang from Trends and Targets |

Our chartist goes under the bonnet and examines what's next for Ford's share price.

Ford (NYSE:F) 

Cumulatively, the thing managed to remain roadworthy for just two out of eight months, a series of electronic problems tending to ensure it never could be trusted to complete a journey.

Even dealerships admitted bewilderment when C-Max electronics decide to play games. We gave up and sold the thing with Ford finally winning the accolade for a real dog of a car.

It will be the only Ford ever purchased, such was the level of trouble. We wonder, in this day and age, how could a car maker fail to implement reliable electronics, given Japan have been doing it since the 1980's? (However, it was nice seeing it report 72mpg at motorway speeds!).

Thus, our approach to Ford's (NYSE:F) share price is tinged with distaste but, to be fair, there's quite a lot to dislike.

Despite strong recovery since the trauma of 2009, the share price faltered and is now presenting a distinctly dodgy picture.

The big problem is the red line on the chart, currently around $8.1. Weakness below this level looks capable of driving the price down to $6.29 next.

While a bounce from $6.29 is possible, in the absence of a miracle we'd suspect it short lived as secondary, should $6.29 break, is down at $1.

Visually, this will represent a return to match the lows of the market crash!

To get out of trouble, as we already suspect $6.29 shall appear, the price requires better than $11.75 as this should trigger some recovery to an initial $13.25.

The chart tends to suggest, should such a level be attained, some hesitation can be expected as it appears a glass ceiling awaits.

Only with closure above $13.25 dare we accept a secondary longer-term calculation of  $16.80.

For now, similar to our gladly unmissed Ford C-Max, we distrust the company share price, but shall take an interest should it achieve the $6.29 level. And, who knows, if the $1 mark ever appears, considering buying Ford would not be out of the question!

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation, and is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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