Ford Motor Co. (F) is edging up from its recent October low but this does not look like a turn worth getting excited about beyond a few days or weeks. Sounds pretty negative and you're right. Let me show you what is going on with the charts and indicators.
In this daily bar chart of F, below, we can see how prices have sunk lower and lower the past year. F is below the declining 50-day moving average line and the bearish 200-day moving average line.
The volume of trading this month does not suggest capitulation nor aggressive buying. The pace of volume has heavier back in January/February before prices recovered temporarily.
The daily On-Balance-Volume (OBV) line has lost ground all year and this month it has made new lows for the move down. A declining OBV line happens when the volume of trading is heavier on days when the stock closes lower.
This month I can see a small double bottom in the 12-day momentum study which is typically too short of a period to be meaningful.
In this weekly bar chart of F, below, we can see a similarly bearish picture as the daily chart. Prices have been working lower the past three years.
F is below the declining 40-week moving average line.
The weekly OBV line is bearish and so is the Moving Average Convergence Divergence (MACD) oscillator.
In this Point and Figure chart of F, below, we can see a nearby price target of $9.03. This is not enough to motivate me to be a buyer - more base building is needed.
Bottom line strategy: The long decline in the price of Ford will be hard to overcome and reverse. Instead of trying to pick a bottom in this security I suggest looking for developed bases elsewhere.
