MOODY’S DOWNGRADES FORD CREDIT RATING, STOCK FALLS
Ford’s stock is currently trading at 9.28-lower by 2.88% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 3.88%. The stock has pared some of its earlier losses after the opening bell.
Moody’s Investor Service has downgraded the automaker’s credit rating to junk status on Monday. The rating service expects weak earnings and cash generation as the carmaker pursues a costly and lengthy restructuring plan. The automaker has embarked on a long-term restructuring plan with $11 billion in charges, and a cash cost of $7 billion. Moody’s also said that the automaker’s outlook remains stable but its cash flows and profit margins are below the consensus estimates.
On the technical front, the RSI is currently at 50.12% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger Bands but is heading downwards.
TRADE SUGGESTION- LIMIT BUY AT 9.24 TAKE PROFIT AT 9.40 STOP LOSS AT 9.16