Ford Motor Co. (F) is feeling the pain from its supply chain. Reports say that Ford may need to shut down some of its U.S. car plants as early as next week if it does not get deliveries of engines from Mexico's Chihuahua state. The governor of Chihuahua has limited industrial capacity to 50% due to the coronavirus.
Let's see if this news is impacting the stock.
In the daily bar chart of F, below, we can see that the decline in the shares started early and did not reach a low until late March. Since that low was made we have seen an early April retest, a May retest and a rally failure to the underside of the declining 200-day moving average line.
The trading volume has been very heavy for several months and yet the On-Balance-Volume (OBV) line shows only a modest improvement into June. This is not the picture of aggressive buying.
The trend-following Moving Average Convergence Divergence (MACD) oscillator looks poised to cross back below the zero line for an outright sell signal.