Ford Motor Co. (F) has been struggling and announced cuts to its workforce. Sometimes the marketplace sees this as a good thing when a company gets leaner but other times it can be viewed as a sign of weakness. Above my pay grade as they say - let's just take a look at the charts and indicators of this iconic brand that Henry Ford started so many years ago and see what they suggest.
In this daily bar chart of F, below, we can see we can see two downswings or declines over the past 12 months. Prices made a recovery from February to early June but it ran out of volume and momentum.
The decline from July has slowed - looking at the improving momentum indicator in the lower panel - but the trend is still down. Prices are below the declining 50-day moving average line and the slower-to-react 200-day line.
The daily On-Balance-Volume (OBV) line shows a decline in the beginning of the year and another one from June as traders and investors were more aggressive sellers.
In this weekly bar chart of F, below, we can see how F has lost ground the past three years. Prices are below the declining 40-week moving average line.
The weekly OBV line is bearish and so is the trend-following Moving Average Convergence Divergence (MACD) oscillator.
In this long-term Point and Figure chart of F, below, we can see the price action from 2007. We can see the 2008 low when you could have bought a share of F for the price of a lottery ticket with better odds of winning.
The chart now shows a possible downside target of $8.00.
Bottom line strategy: F is struggling in the marketplace and on the floor of the NYSE. Prices are pointed lower and the Point and Figure chart projects an $8 price target. Stand aside.