Ford (F) NewsBite - Analyst's Comments Pull Down Ford

Posted on Friday, July 18, 2008 10:10 AM
Ford (F) opened at $5.44. So far today the stock has hit a low of $5.34 and a high of $5.54. F is now trading at $5.34, down 0.15 (-2.73%). After hitting a one-year high of $9.24 in October, the stock hit a one-year low of $4.30 earlier this month. Shares of F are declining this morning after an analyst at CNBC said that the recent rally for automakers GM and F is due largely to a week-long drop in oil prices, and that the rally will not extend much further. He added that second-quarter earnings will likely be disappointing, which could cause stock prices for the automakers to plummet. Technical indicators for F are bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a December bear-call credit spread above the $8 range. F hasn’t been above $8 since May and has shown resistance around $5.60 recently. This trade could be risky if the price US economy picks up, but even if that happens, this position could be protected by resistance F might find at its 200 day moving average, which is currently around $6.75 and falling. [LHF- Seven Summits Strategic Investments NewsBite]
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