Ford shares gain the most in two weeks on Friday, $350 million to be invested in company’s Livonia transmission plant

May 22, 2017 7:11 am

On May 19th Ford Motor Company (F) revealed intentions to invest $350 million in the upgrade of its Livonia transmission plant located in Michigan in an attempt to extend its powertrain lineup. According to the second-largest US auto maker, employment at that plant has increased to 1 800 from 1 550 in 2016. However, Ford did not reveal any exact number of jobs to be added.

Ford shares registered their largest daily surge since May 5th during Friday’s trading session. The stock went up 0.74% ($0.08) to $10.87, after touching an intraday high at $10.94, or a price level not seen since May 17th ($10.95). In the week ended on May 21st the shares of the global automotive company lost 0.46% of their market value compared to a week ago, which marked a third consecutive period of decline, but yet, the smallest decrease since the week ended on March 19th. However, the stock has pared its loss to 5.23% so far during the current month, following a 1.46% drop in April. The latter has been a second consecutive month of losses. For the entire past year, Ford shares lost 13.91%.

The announced investment represents part of a previously revealed commitment by Ford to invest $9 billion and add 8 500 hourly job positions at its factories across the United States during the upcoming years.

In the past five years, $12 billion have been invested in facilities and almost 28 000 jobs have been added by the firm across the United States.

Meanwhile, the auto maker said last week that 1 400 salaried jobs in North America and Asia were to be cut, as the company intended to reduce costs by $3 billion. Ford explained that these cuts would not affect its hourly workforce or production activity.

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Ford’s stock price, have a median target of $12.50, with a high estimate of $17.00 and a low estimate of $10.00. The median estimate is a 15.00% surge compared to the closing price of $10.87 on May 19th.

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 – $10.88
R2 – $10.90
R3 (Range Resistance – Sell) – $10.92
R4 (Long Breakout) – $10.95
R5 (Breakout Target 1) – $11.00
R6 (Breakout Target 2) – $11.02

S1 – $10.86
S2 – $10.84
S3 (Range Support – Buy) – $10.82
S4 (Short Breakout) – $10.79
S5 (Breakout Target 1) – $10.74
S6 (Breakout Target 2) – $10.72

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

Central Pivot Point – $10.87
R1 – $11.07
R2 – $11.27
R3 – $11.47
R4 – $11.67

S1 – $10.67
S2 – $10.47
S3 – $10.27
S4 – $10.07

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