The Ford Motor Company (NYSE: F) is set to deliver its earnings report for Q1 of 2021 today. The company is expected to show a rise in sales, due to an increase in global demand for new cars. The demand was caused by a partial removal of the restrictive measures in relation to movement, and also by the fact that there is a global shortage of microchips, which are heavily used in various industries, including automaking.
The technical picture of F on our 4-hour chart shows that yesterday, the stock broke and stayed above a short-term downside resistance line taken from the high of March 15th. If the share price continues to trade above that line and above all of its EMAs, we will remain positive, at least with the near-term outlook.
A further push north, away from the aforementioned downside line, could bring the stock to the high of April 9th, at 12.62, or to the current highest point of April, at 12.99. Initially, F may stall there for a bit, or even correct slightly lower. However, if the share stays somewhere above the 12.48 hurdle, marked by the high of April 14th, that may keep new buyers interested for a while. If so, this might result in a push higher and a possible break of the 12.99 barrier, this way confirming a forthcoming higher high and opening the door for a move towards the 13.62 level, marked by the highest point of March.
Both, the RSI and the MACD, are pointing higher. In addition to that, the RSI is above 50 and the MACD is above zero and its trigger line. The two indicators are showing increasing upside price momentum, which supports the scenario mentioned above.
Alternatively, if the stock falls back below the previously discussed downside line and drops below the 12.15 zone, marked by the high of April 22nd, that could scare off new buyers for a while. F may then slide to the 11.84 obstacle, or even to the 11.74 zone, marked by the low of April 22nd and the high of April 21st respectively. However, if there are still no new buyers in sight, the stock could continue drifting south, potentially aiming for the 11.21 and 11.35 levels, marked by the lows of April 21st and 20th respectively.
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