Sadly the mighty Ford is showing its true colors. Nothing material in the line up except repeat sales of the F150 and Explorer and getting plumbers and electricians to convert to their Transit van.
Auto buyers now currently fall into 3 categories:
1. they bought one recently and aren't ready to trade up
2. they're unable to buy one as they just got laid off
3. they're scared to spend in the near-term given the current climate.
That's bad for debt-saddled Ford that just cut it's dividend. If it breaks this bear flag/pennant pattern, the next level of support is a huge drop to it's 2008 low.
Auto buyers now currently fall into 3 categories:
1. they bought one recently and aren't ready to trade up
2. they're unable to buy one as they just got laid off
3. they're scared to spend in the near-term given the current climate.
That's bad for debt-saddled Ford that just cut it's dividend. If it breaks this bear flag/pennant pattern, the next level of support is a huge drop to it's 2008 low.
Note
Quick update. F is still following the pennant pattern. Friday's move up is strong though and could prove the start of a reversal. I've not traded this one as no meaningful break-out has occurred... yetNote
The pattern is still valid. Next few days will determine which way the break will be.Trade active
Opening trade now, as there is a meaningful break out from the pennant to the low sideNote
A couple of strong days from Ford buyers at the end of the week in-line with the whole market being bullish, but the MACD-Histogram is still headed down through zero, so the overall bearish view is still intact. If there is another strong day on Monday, then the trend will be reversed and I'll get stopped out, otherwise I'm holding for more downside.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.