F shares out of fashion despite positive sales growth

• Ford inventory is down 49% YTD.
• Ford documented a 32% maximize in auto profits in June.
• F stock has sold off regardless of positive product sales figures.

Ford (F) stock cannot seem to catch a split. Despite on Tuesday reporting a 32% YoY improve in vehicle sales in June, shares continued accomplishing what they have performed all year – promote off. At the time of writing just soon after Wednesday’s opening bell, Ford inventory is off a different 1.5% at $11.03. So what gives?

Ford Inventory Information: Gross sales shifting in the correct direction or are they?

Ford management noted 152,262 sales in June. The figures had been manufactured up of mainly increased-margin types like the F-150 and Explorer. Electric vehicle figures also grew 77% YoY, now creating up close to 3% of the complete. 

The cause analysts and banking institutions are significantly less enthused about the figures is that the supply chain crunch of 2021 brough those calendar year ago figures down significantly, so beating them by a big margin seems to be much more of a statistical trick than a correct progression. For occasion, Ford’s June product sales figures were being a very little more than 1% off the Might figures, and Ford’s 1st half observed an 8% overall decrease in unit gross sales.

For the very first half of 2022, Ford bought about 916,000 automobiles, down from 997,000 in the initial half of 2021. Ford’s 8% decline, nevertheless, appears greater than its industry’s drop of 18% above the exact period. It certain would seem like the recession has by now appear for the automobile business.

Ford Stock Forecast: How substantially additional can Ford fall?

Ford inventory is down 49% yr to date. From the weekly chart beneath, observers can see Ford stock taking an escalator down an invisible descending trend line since at minimum the conclusion of January. The major of Ford’s cluttered price channel is pent in by the 9-week moving regular (blue). Hence far that regular is descending at an even keel and demonstrates no indications of supplying up. The Transferring Typical Convergence Divergence (MACD) and Relative Power Index (RSI) give no indications of a turnaround in the works.

It appears that even though Ford inventory is at aid now, it may well go on to drift right until it finds the January 2021 support at $8.45. To split out of this price tag channel, Ford stock desires to break over the $12.45 resistance amount. That rate will come from June, and the $14 resistance area appropriate earlier mentioned it will come from May well. Higher than there stands resistance from April at $16.55, but again there are just zero catalysts for upward movement in this stock. A momentary bounce could procede from F shares touching the lower craze line.

Ford weekly chart