Ford shares gain for a second straight session on Friday, company to increase investment in electric vehicles to $11 billion by 2022

January 16, 2018 8:32 am

In a speech at the Detroit auto show on Sunday, Ford Motor Co’s Chairman Bill Ford said that investments in electric vehicles would be increased considerably to reach $11 billion by the year 2022. At the same time, the auto maker’s global model lineup is to include 40 electrified vehicles, of which 16 are expected to be fully electric while the remainder will be plug-in hybrids.

Ford shares closed higher for a second consecutive trading session on Friday. The stock went up 0.53% ($0.07) to $13.23, after touching an intraday high at $13.29, or a price level not seen since July 27th 2016 ($13.99).

In the week ended on January 14th the shares of the global automotive company added 0.23% to their market value compared to a week ago, which marked a second consecutive period of gains. Yet, it has been the smallest increase since the week ended on September 10th.

The stock has extended its advance to 5.92% so far during the current month, following a 0.24% dip in December. The latter has been the first monthly retreat since August.

For the entire past year, the shares of the NYSE-listed auto maker rose 2.97% following a 13.91% slump in 2016.

Ford had previously announced an investment objective of $4.5 billion by 2020. According to executives, the newly announced target for investments also includes development costs of dedicated electric vehicle architectures.

In October, Ford’s Chief Executive Officer Jim Hackett said that the company planned to reduce costs by $14 billion during the upcoming five years, while capital investment would be shifted from internal combustion engines and sedans to electric and hybrid vehicles and trucks.

“We’re all in on this and we’re taking our mainstream vehicles, our most iconic vehicles, and we’re electrifying them”, Bill Ford said, cited by Reuters. “If we want to be successful with electrification, we have to do it with vehicles that are already popular”, he added.

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $13.00, with a high estimate of $15.00 and a low estimate of $9.50. The median estimate is a 1.74% decrease compared to the closing price of $13.23 on January 12th.

The same media also reported that 17 out of 25 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 4 – 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 – $13.247
R2 – $13.265
R3 (Range Resistance – Sell) – $13.282
R4 (Long Breakout) – $13.335
R5 (Breakout Target 1) – $13.396
R6 (Breakout Target 2) – $13.422

S1 – $13.213
S2 – $13.195
S3 (Range Support – Buy) – $13.178
S4 (Short Breakout) – $13.126
S5 (Breakout Target 1) – $13.064
S6 (Breakout Target 2) – $13.038

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

Central Pivot Point – $13.160
R1 – $13.360
R2 – $13.490
R3 – $13.690
R4 – $13.890

S1 – $13.030
S2 – $12.830
S3 – $12.700
S4 – $12.570

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