Last Thursday, Ford Motor Co. (NYSE: F), announced it will reduce 12,000 jobs by the end of 2020 in Europe. This step responds to a cost reduction plan facing the need for emissions reduction. In the opposite side, Ford was traded mostly bullish raising near to 3%.
Ford – Expecting new highs
On the technical side, Ford shows a bullish structure which calls for more upsides. The current sequence suggests that the price should see new highs between $11.45 and $11.90.
The increasing volume reported in the last sessions makes us expect for a new bullish leg. The RSI oscillator remains with a bullish bias, supporting the uptrend bias. The invalidation level for this scenario is at $8.58.
General Motors – Developing a triangle pattern
Not only Ford is facing new challenges to built low emission cars. General Motors (GM) is in the race too. GM announced plans to develop electric and autonomous vehicles in the coming two years.
On the technical side, we observe a triangle pattern which found support at $30.56. The price and RSI shows a bullish bias. Mid-term, we expect a bullish breakout that could drive its price to fresh highs between $42.98 and $46.12. Long-term, we expect GM to visit the $50 zone. The invalidation level for this scenario is $31.70.
Remember that the price is not compelled to move as our forecast proposes. The charts released corresponds to the Elliott Wave Theory application.