Ford: buy the dips

Ford will publish its Q4’2020 earnings on the night of February 4-5. What to expect?

Ford & Google 

Ford and Google shares rose on Monday after the companies signed a partnership to produce connected vehicles powered by Google's Android operating system. “As Ford continues the most profound transformation in our history with electrification, connectivity, and self-driving, Google and Ford coming together establish an innovation powerhouse truly able to deliver a superior experience for our customers and modernize our business,” Ford President said.

Cramer: buy the dips

Jim Cramer, CNBC's journalist, and hedge fund manager, recommended buying the dip Ford Motor Company after earnings. Ford is now one of the stocks to consider buying after Tesla under Biden’s green energy boom. The President pledged to fight climate change and support the development of zero-emission vehicles. His goal is to reach a carbon-free energy sector in the US by 2035. Ford should benefit due to its approach to its "digital transformation".

How to trade on earnings report? 

• If the actual earnings are greater than the estimates of -0.08, the stock price will jump.
• If the actual earnings are less than the estimates of -0.08, the stock price will drop.

Check earnings calendar

Technical analysis

There’s an interesting situation on the Ford weekly chart. We can notice the basic case of retracement. The key level is $10.50 as the price has failed to cross it many times when this level was both support and resistance. Retracement to a key level creates the optimal situation to enter the market. In the chart below you can notice that the price has pulled back to the key level after it closed above it. Since the stock is moving in an uptrend, this pullback should be a natural sell-off ahead of the further rally upwards. The move above the high of January 17 at $12.00 will push the price up to the record high of $13.50 unseen since 2018. Support levels are $8.75 and $7.50. 

You can also trade Ford stock with FBS Trader mobile app. Remember that stock trading starts as the US session begins (at 16:30 MT time). 

Don't know how to trade stocks? Here are some simple steps.

1. First of all, be sure you’ve downloaded Metatrader 5 or FBS Trader app. FBS allows you to trade stocks only through this software.
2. Open the MT5 account in your personal area (an account in FBS Trader).
3. Start trading!

                                                                                                  TRADE NOW

Author: FBS Analyst Team

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