Ford Motor Co. ( F) reported mixed earnings numbers Thursday evening. Let's check out the charts and indicators on this Action Alerts PLUSholding.
In the daily bar chart of F, below, I can see a potential triple-bottom pattern in play. The shares made lows in July, October and December. Prices have yet to break out over the highs of August to confirm the base and breakout. F is trading above the still declining 50-day moving average line and the declining 200-day line. F is likely to pull back in trading Friday and could retest these two popular moving averages.
The trading volume has not increased across the pattern and the daily On-Balance-Volume (OBV) line shows a sideways pattern from August. A rising pattern would be a more positive development. The Moving Average Convergence Divergence (MACD) oscillator has fluctuated around the zero line and is now slightly above it.
In the weekly Japanese candlestick chart of F, below, I can see a developing bottom pattern. Prices declined into the $12-$10 area three times and found buying interest (support). F has rallied above the 40-week moving average line but the slope of the line is still negative.
Weekly trading volume is neutral to slightly negative and the OBV line is following the movement of prices. The MACD oscillator has been stable but still remains below the zero line and not flashing a buy signal.
In this daily Point and Figure chart of F, below, I can see the recent rally and a potential price target in the $17 area.
In this weekly Point and Figure chart of F, below, I can see a potential price target in the $19 area but there is overhead chart resistance.
Bottom-line strategy: F has been making a base pattern since June but the process is likely to continue for a while longer. F could pull back again into the $13-$12 area.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.