Is Ford a buy or a sell in November?

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Wall Street is “bullish” for Ford, and this stock could be a good “buying opportunity
The technical picture suggests that the price could rise above $8.5 this November.
Joe Biden has a great chance of becoming the next president of the USA.

Ford shares rose from $6.9 to $8.3 in less than thirty days and the current price is $7.99. The technical picture suggests that the price could rise above $8.5 this November, but there are also some obvious risks when it comes to buying Ford shares (NYSE: F).

Fundamental analysis: Even with the COVID 19 pandemic, Ford’s business is doing well

The Ford Motor Company is an American multinational car manufacturer that sells cars and commercial vehicles under the Ford brand and most luxury cars under the Lincoln brand. The coming months will be competitive for the global auto industry, but even with the COVID 19 pandemic, sales of Ford cars are going well.

Ford sales in the U.S. fell by only 4.9% to 551,976 vehicles in the third quarter, exceeding expectations. Truck sales increased by 0.6% to 311,751 units, while SUV sales decreased by 0.7% to 191,803 units.

The negative news is that car sales in the third quarter fell 37.5% to 48,424 units, but despite the challenging pandemic environment, Ford had its best third quarter of pickup sales since 2005.

The Ford Company also unveiled plans to build the F-150 EV electric, and this will certainly attract new customers and increase the company’s revenues. Investor attention is currently focused on the U.S. presidential election, and the U.S. stock market is progressing despite the ongoing election uncertainty.

Joe Biden has a good chance of becoming the 46th president, and the camp around Biden hopes to cross the 270 threshold today. The price of Ford stock has not changed too much after the elections failed to produce a clear winner, and the current price is very close to the resistance level, which is $8.

Ford shares could be a good investment opportunity, and most financial analysts also expect the price of Ford shares to rise significantly in the coming years. If we compare the total equity of $30.85 billion and the market capitalization of $31.79 billion, we can see that this share is not overvalued and now might be a good time to buy Ford shares.

Another useful piece of information for potential investors is that this company has paid more than $7 billion in dividends to its shareholders in the last three years, and this number may increase in the future. Some estimates predict that the automotive market will grow only slightly in the next few years, but Ford Company will be one of the main players.

Technical analysis: the bulls keep control of prices

If you decide to trade in Ford shares (NYSE: F), you should bear in mind that the price could also fall in the coming days under the pressure of uncertainty in the global economy. Ford has recently recalled more than 700,000 vehicles in North America, and the company has set itself the goal of reducing 1,400 jobs in the U.S. by the year.

Data source: tradingview.com

On this chart I have marked the current resistance and support levels. The current support levels are $7.5 and $7, $8, $8.5 and $9 represent the current resistance levels.

If the price jumps above $8.5 it would be a “buy” signal and we have the open path to $9. A rise above $9 supports the continuation of the bullish trend and the next price target could be around $10.

If the price falls in the coming period, any price in a range of $5 to $6 could be a very good opportunity to invest in Ford shares.

Summary

The U.S. elections are being watched closely, according to the latest news Biden is taking the lead in Georgia, but the U.S. presidential election is progressing, with the winner not yet officially announced. Ford shares could be a good investment opportunity in November, but you should keep in mind that there are some obvious risks. If the price jumps above 8.5 dollars, it would be a “buy” signal and we have an open path to 9 dollars.

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