Ford Large Equity Trades Reveals Key Price Level for Stock

Ford Motor Co (NYSE: F) closed nearly 10% lower last Friday following their earnings report. The company missed estimates both on the top and bottom line and announced today that they plan to cut or suspend production at eight plants. After over doubling in price in 2021, the current sell-off may provide further potential downside in coming months. Given the three large equity trades that popped up on Ford today, it looks like the price may be at a critical level to either rally or continue it's decline.

Ford Stock Activity

Most of the time I post on significant option activity, but that isn't the only indicator for the direction of a stock. Another is looking at large equity trades and Ford has had several in recent months. Each print provided a key level of support or resistance.

Today, Ford had two prints of over 1.8 million shares at $17.75, and one print of almost 1.6 million shares at $17.75. A print of over 1 million shares is significant to get filled in one trade, but the activity three 1 million plus share prints at the same price!

Ford Technicals

You may be asking if it was a buy or sell, but it doesn't really matter. What matters is that there was significant agreement at that price level. The result is that if the price level holds or if it breaks, the consequences can be extreme. A break below that level is an indication the price may roll back towards $15.40, which is a prior level of support and significant print of 1 million shares. Holding this level could indicate the price may test $19 or rally back to another significant level near $21.30. That level accompanied several 1M plus prints in mid-December and the first part of January.

Conclusion

While it's impossible to know whether Ford rallies or breaks support, you know the key level is at $17.75. The indication is that the price will move signficantly in either direction. That is the key to understanding support or resistance. The principle is understanding where there is agreement in the market. When that agreement is broken, the price should move to the next level where there is agreement. In the case of large equity prints, these levels become instantly important.

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