Ford Motor Co. (F) was trading lower in pre-market activity here on Tuesday as traders reacted to news about parts availability issues at the automotive giant. Let's check the position of Ford's charts and indicators.
In this daily bar chart of F, below, we can see that prices rallied in July and August but failed at the underside of the declining 200-day moving average line. Prices have retreated to test the rising 50-day moving average line and we should see a stronger test of that line today. A close below the 50-day line weakens the picture. The On-Balance-Volume (OBV) line has weakened in September and suggests that sellers of F have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) is slightly above the zero line, so a new outright sell signal could be seen soon.
In this weekly Japanese candlestick chart of F, below, we can see a weakening picture. Prices stalled at the underside of the declining 40-week moving average line. The weekly OBV line has turned lower from a lower high. The MACD oscillator is narrowing from below the zero line -- not a positive trend.
In this daily Point and Figure chart of F, below, we can see an upside price target in the $27 area. A trade at $17 is needed to refresh the uptrend.
In this weekly Point and Figure chart of F, below, we see the same upside price target of $27 and the same need for a trade at $17 to refresh the uptrend.
Bottom line strategy: It looks like shares of F can retreat to the $12 area and maybe lower in the weeks ahead.
