Ford shares rebound on Thursday, company to abstain from raising prices in China despite new tariffs

Ford Motor Company (F) made an announcement on Thursday that for now it would abstain from raising prices of imported Ford and luxury Lincoln vehicle models in China, just a day before the additional 25% duty on $34 billion worth of Chinese imports, which the Trump administration announced in June, comes into effect.

Ford shares closed higher for the third time in the past twelve trading sessions in New York on Thursday. The stock went up 0.55% ($0.06) to $11.05, with the intraday high and the intraday low being at $11.13 and $11.02 respectively.

Shares of Ford Motor Company have retreated 11.53% so far in 2018 compared with a 2.36% gain for the underlying index, S&P 500 (SPX).

In 2017, Ford’s stock surged 2.97%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

In a statement, the US auto maker said that it had “no current plans to increase the manufacturer’s suggested retail price (MSRP) on its import line-up in China”.

After recently cutting tariffs on all imported autos, China said it intended to impose an extra 25% levy on 545 US goods, including automobiles produced in the US, in case the US government was to proceed with plans to impose extra duties on Chinese imports.

Ford spoke in favor of finding a resolution to the dispute between the United States and China, while also saying it will “monitor the situation as it evolves”.

In 2017, about 80 000 vehicles were shipped by Ford from North America to China, with more than 54 000 of them being luxury Lincolns.

According to CNN Money, the 18 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $12.50, with a high estimate of $16.00 and a low estimate of $8.00. The median estimate represents a 13.12% upside compared to the closing price of $11.05 on July 5th.

The same media also reported that 14 out of 21 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

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

R1 – $11.060
R2 – $11.070
R3 (Range Resistance – Sell) – $11.080
R4 (Long Breakout) – $11.111
R5 (Breakout Target 1) – $11.146
R6 (Breakout Target 2) – $11.160

S1 – $11.040
S2 – $11.030
S3 (Range Support – Buy) – $11.020
S4 (Short Breakout) – $10.990
S5 (Breakout Target 1) – $10.954
S6 (Breakout Target 2) – $10.940

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

Central Pivot Point – $11.26
R1 – $11.48
R2 – $11.90
R3 – $12.12
R4 – $12.35

S1 – $10.84
S2 – $10.62
S3 – $10.20
S4 – $9.79