Ford shares retreat the most in two weeks on Tuesday, company said to be taking cautious stance to electric vehicle market in China

April 19, 2017 9:24 am

According to a report by Reuters, Ford Motor Company (F) is taking a cautious stance in regard to production of electric and plug-in hybrid vehicles for China, as consumer interest and government policy remain surrounded by uncertainty.

Ford shares registered their largest daily loss since April 3rd during Tuesday’s trading session. The stock went down 1.24% ($0.14) to $11.14, after touching an intraday low at $11.08, or a price level not seen since November 9th 2016 ($11.07). In the week ended on April 16th the shares of the global automotive company lost 1.07% of their market value compared to a week ago, which marked a second consecutive period of decline. The stock has extended its loss to 4.30% so far during the current month, following a 7.10% drop in March. The latter has been the largest monthly decrease since January 2016. For the entire past year, Ford shares lost 13.91%.

Earlier in April, the auto maker unveiled plans to offer hybrid or fully electric variations of all the models it manufactures in China by 2025.

However, during a meeting with reporters prior to the Shanghai auto show on April 19th, Trevor Worthington, Ford’s vice president for product development in the Asian Pacific area, and Mazen Hammoud, the company’s powertrain director for that region, noted that recharging the batteries of vehicles would be a huge issue.

“Our goal needs to be something on the order of less than half an hour” for an 80% charge, Mazen Hammoud said, cited by Reuters. All in all, “the goal needs to be similar to refueling a gasoline vehicle. We are a long way from that.”

According to Trevor Worthington, the auto maker has a “team of people who meet with the government every week” in order to discuss policies for promoting vehicle electrification.

Worthington also said that the company planned to introduce to the Chinese market what local officials refer to as “new energy vehicles”, while maintaining cost efficiency.

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Ford’s stock price, have a median target of $13.60, with a high estimate of $17.00 and a low estimate of $10.00. The median estimate is a 22.08% surge compared to the closing price of $11.14 on April 18th.

The same media also reported that 14 out of 25 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Ford stock are presented as follows:

R1 – $11.149
R2 – $11.158
R3 (Range Resistance – Sell) – $11.168
R4 (Long Breakout) – $11.195
R5 (Breakout Target 1) – $11.227
R6 (Breakout Target 2) – $11.241

S1 – $11.131
S2 – $11.122
S3 (Range Support – Buy) – $11.113
S4 (Short Breakout) – $11.085
S5 (Breakout Target 1) – $11.053
S6 (Breakout Target 2) – $11.039

By using the traditional method of calculation, the weekly levels of importance for Ford Motor Company (F) are presented as follows:

Central Pivot Point – $11.190
R1 – $11.270
R2 – $11.430
R3 – $11.510
R4 – $11.590

S1 – $11.030
S2 – $10.950
S3 – $10.790
S4 – $10.630

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