In our last review of Ford Motor Company ( F) on May 13 we warned of further declines. F has indeed declined to a lower low but the condition of the indicators is worth checking again.
In the daily bar chart of F, below, we can see that the shares are in a downtrend from January. Prices are pointed lower but that is not the whole story. F is trading below the declining 50-day moving average line and below the now declining 200-day line.
The On-Balance-Volume (OBV) line was weak from January to May but has turned sideways since May. The 12-day price momentum study shows sideways movement from May to June even though prices made lower lows. This difference between the price action and the indicator is a bullish divergence. 
In the weekly Japanese candlestick chart of F, below, we can see a minor improvement in things from our last review in May. There are two small lower shadows on the candles in June. The slope of the 40-week moving average line has turned negative but that is a lagging indicator.
The weekly OBV line is starting to flatten out in June from a prior decline. The 12-week price momentum study shows some improvement with a higher low.
In this daily Point and Figure chart of F, below, we can see a downside price target of $9. A rally to $12 is probably needed to improve this chart.
In this weekly Point and Figure chart of F, below, we can see a $7 price target.
Bottom-line strategy: The price of F has been more than cut in half and some of the indicators are showing some improvement. A rally in F above $12 is possible and it should improve the charts.
(F is a holding in the Action Alerts PLUS member club . Want to be alerted before AAP buys or sells F? Learn more now. )
