Stock of the day: Ford

Today, I am bringing you an update on Ford who created a very dangerous bearish formation on the long-term chart. Before we dig deeper, let me remind you about our previous piece on Ford. We analyzed this instrument at the beginning of November and back then we were bearish, saying this:

“Instead of a breakout, we received a shooting star candle on a daily chart, which is a very negative sign. The potential target for this movement is key, long-term support on the 11 USD (yellow), which was an important level in April 2021 and the summer of 2022. “

The price did reach the said support at the end of December but, to be fair, it didn’t fall down straight away, rising for a few days after those words were written. Now, Ford continues to trade low. On the chart, we have a big descending triangle pattern (black and green), which is generally a bearish formation promoting a breakout of the green support.

In addition, the end of the triangle is shaped like head and shoulders (yellow), which may be a great start for a bigger drop. Friday and Monday brought us a test of the 11 USD support. The price bounced, but the sellers are probably going nowhere and the bearish pressure will still be there. Any crack in the global sentiment can be a selling trigger here, so buyers need to be careful.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-ford