Hey what's going on everyone, i hope you're having a great day, i'm matt and i'm back at it again with another stock analysis in this video i'll, be discussing ford motor company i'll, be covering an overview of the business, an investment outlook and, finally, a technical analysis Of the stock, if you enjoy this type of content, hit the like button and subscribe to the channel, all the engagement really helps with getting this video in front of other people. If you have a particular company, you want me to do an analysis on leave it in a comment below don't forget to turn on your notifications. So you don't miss any of the new videos. For the few of you who don't know, ford is an american automaker dynasty, that's been around since the early 1900s they're responsible for classics such as the mustang, and they also create the incredibly popular f-series of chuck.

In the year 2019 alone, they produced over 5.5 million vehicles now that we're all on the same page about what business sector ford is operating in. I want to take a quick moment to discuss the company from a high level view on the screen. Now is ford's weekly chart from 2013. Until now, as you can see, it appears that the company is stuck in a downward channel from the high in july of 2014 to the low in march of 2020, the stock lost 78 percent of its value.

I'm sure this noticeable fall was prompted by a multitude of reasons, but there were two evident ones to me. First is their innovation, or, should i say, lack of innovation when compared to direct competitors such as tesla there's, something that's obviously missing. Second is the nature of the automaker industry over the past handful of years? To put it simply, it's become increasingly difficult to produce a noteworthy profit. So that's where ford's at in the bigger picture, but let's switch over to the daily chart to get a better understanding about, what's been going on more recently, these blue lines represent the same downward channel.

We saw on the weekly graph and to give you better reference. This vertical line is the first day of 2020. from everything i uncovered in my research at the beginning of this year, ford was on its way to break out of this bull flag. They created an entirely new corporate approach.

They were getting ready to compete in the era of smart cars, ride sharing and clean energy. They funneled an incredible amount of resources into innovation and were able to produce things like the mustang maki, an electric vehicle. Unfortunately, a poor earnings report in february and the devastating impact of covid caused the stock to drop 58 from january 2020 to march 2020. from that low.

At one point, the company rallied 93 and at the time i'm making this video it's up 52. So, with all this volatile action, you might be wondering if this is a company, that's about to make a monstrous return, or is it a stock that you should simply forget about i'll, do my best to present both the bull and bear case, but before i get Into that i want to know that i do not own any ford stock and i don't plan on buying any in the near future. The bear camp is saying everything you would expect. They point out that in march the dividend was stopped.

The losses from q2 alone were over 5 billion dollars, and both production and sales are taking a serious hit. Granted the f series truck is extremely popular. Some people are wondering if the company isn't doing enough to be competitive within the space. On the other hand, the bull camp likes to cite that the company has a pretty solid balance sheet.

They have 35 billion dollars in liquidity and only 15 billion dollars in long-term debt. They also point out that, even though ford was late to the party, innovation is happening and it's happening now, which is making them more competitive. The way i personally see it. Two things need to be managed in the near term.

The company has to handle the height and business pressures caused by cobit in the long term, they have to be adaptive to the secular shifts within the industry. If these two things are handled well, i would expect the stock to break out of this downward channel. If they aren't, the stock may continue to be stuck within the channel or worse. It could break below it.

For those of you who are more interested in actively trading forward, rather than considering it to be an investment, here's some technical analysis, so you have a better concept of what support and resistance. You should be paying attention to. The first thing i want to bring to your attention: is this wedge on may 18th, it was announced that the u.s factories would be reopened. This news was obviously well received by the market and it even prompted a 58 rally.

The rally hit a wall at a resistance previously established by a gap in late february. If the new f-150 is well received, as well as the electric mustang maki. This is the first resistance i would be paying attention to if things get incredibly bullish and the stock is pushed through this area of supply, i would then be watching for 8, 48 and 907. I do think that these top two lines are far away targets for the bulls, but the bottom one alone would be a gain of 27.

If you're interested in a smaller time frame target, i would be watching 658, which would be a gain of just under 9. Now, let's take a look at the lines of support. The first obvious one is right here at 581. This was established multiple times in june, also in april and in march it seems like there's quite a bit of demand just below six dollars.

If the bears pushed the stock below that the next support i would be watching would be 5.49 depending on, if or when this ever happens, a bounce could also occur of one of these trend lines. If things get bad, you could watch 452 and if things get really bad, you could watch 396. in general. I would recommend entering and exiting your trades at these support and resistance lines.

It's the best way to optimize your risk to reward ratio. If ford were to ever break out of this downward channel, i would go from being a non-investor to long on the company. I do think the company has quite an uphill battle because they have six years worth of bag holders who would be happy to recoup any considerable percentage of their investment. This is all just my two cents, though i'm not a financial advisor and you're in charge of your own trades, thanks for watching.

If you enjoyed the video, let me know by hitting the like button and subscribing to the channel, don't forget to turn on your notifications. If you have a favorite stock that you want me to do an analysis of, let me know in the comments below and as always best of luck in the markets.