FORD Motors Among The First To Re-open Business
On 22nd May, US President Trump gave a speech at Ford motor plant, where he praised Ford for manufacturing ventilators amid the Covid-19 situation. It was also unveiled that Ford is returning to production as US-reopens, with plans to restart its North American production in a safe fashion.
The fact that Ford is restarting is production will be a boost to its upcoming performance. Its decision to shift some of its capacity to manufacture ventilators due to the Covid-19 pandemic also shows its versatility and the resilience of its business model. Meanwhile Ford’s Chinese joint ventures have also been outperforming, which will be a catalyst to Ford.
However, there are still remains some risk that should be closely watched. These include concerns with regard to supply chain, where the lack of certain components could hinder its production. There is also the possibility in resurgence of Covid-19 cases among workers once full manufacturing capacity resume.
Technical Outlook (Powered by Trading Central):
Ford Motor ST: The upside prevails as long as 5.27 is support. Our pivot point stands at 5.27.
Our Preference: The upside prevails as long as 5.27 is support.
Alternative Scenario: The downside breakout of 5.27 would call for 4.76 and 4.45.
Comment: The RSI is above neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at 5.3 and 5.07)
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