Looking at the technical picture of the Ford Motor Company stock (NYSE: F) on our four-hour chart, we can see that the share price continues to trade above a broken medium-term downside resistance line taken from the high of June 4th. Yesterday, the stock formed a new high for September, overcoming the previous one, at 13.70. For now, we will take a positive approach and continue aiming higher, especially if F stays above that 13.70 barrier.
A further push north may bring the stock to the 14.05 obstacle, or to the 14.33 zone, marked by the highest point of August, where F might stall for a bit. The share price could even retrace slightly lower from there, but if it continues to trade somewhere above the previously mentioned 13.70 zone, new buyers might join in and drag the stock up again. If they are able to overcome the 14.33 barrier this time, the next possible target may be at 14.78, which is the high of July 29th.
The RSI is currently flat but remains above 50. The MACD continues to aim higher, while running above zero and its trigger line. The indicators show positive price momentum, which supports the scenario discussed above.
Alternatively, if the share price falls back below the 13.19 zone, marked by the inside swing high of September 20th, that could increase the stock’s chances of moving lower, as it would be placed back below all of its EMAs. Such a move may keep new buyers away from entering the arena for a while and F might drift to the 12.97 obstacle, or to the 12.63 zone, marked near the lows of September 13th and 20th respectively. If the slide continues, the next potential support area could be seen around the 12.39 level, which is the lowest point of August.
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