The past few years have been a bumpy ride for Ford (NYSE:F) investors. But the big picture on the price chart strongly supports investors buying Ford stock today, as it is nearing a profitable road ahead.
Last year’s broader market correction didn’t do most investors any favors during the worst of it. And that includes those who invested in Ford stock.
Yet, for those investors that opted for a test drive during the height of the panic, 2019’s first quarter did prove to be a windfall of profits. And that includes F stock bulls as well.
But unlike most stocks tethered to the rising market tide of the last decade, Ford has been driving its investors down a slippery slope the past few years. Since hitting a very narrow post-financial crisis high of $14.26 in July 2014, shares of F are off by about 37%. And that’s despite a gain of 23% from late December’s absolute market-wide bottom.
What’s more, since 2012’s broad-based correction, Ford stock has only sputtered higher with a Model T style performance of just 36%.
The good news in all of this is that fresh leadership by F stock looks to be at hand. Sure, it may not be the same fundamental disruptive type of peer and electric vehicle powerhouse as Tesla (NASDAQ:TSLA), and there continues to be well-supported warnings of Ford’s dividend being at risk, but from a technical standpoint, F stock’s detour positioned shares for some serious upside.
Ford Stock Monthly Chart
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The big picture of F stock’s detailed monthly chart shows that shares have been down a difficult road since hitting a modest relative high in 2014. But late 2018’s pervasive correction did ultimately do shareholders a big favor — following a bit more technical and towel-throwing style pain.
The December bottom in the broader market has allowed Ford stock to turn around off a successful challenge of its 50% retracement level from 2009’s historic financial crisis bottom. The price action also managed to reverse above a major low set in 2012. This has established a bullish higher low and a confirmed monthly uptrend still lost on lesser time frames.
Now, after January’s explosive rally in the Ford stock price, shares have been consolidating those gains and parked near that month’s candle high in a pair of doji decision candles. I’m of the mind the current idling on the price chart will lead to additional confirmation of the monthly uptrend and a fresh leg higher in Ford shares.
Bottom line, for investors that believe in the bullish big picture, capital gains beckon for today’s buyers of F stock.
Disclosure: Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
