Ford Motor Company (F) is navigating a rough patch, with its stock price facing downward pressure and several technical indicators signaling a bearish outlook. The stock has fallen 8.7% year-to-date and experienced a sharp 19% dip over the past month, culminating in a ‘Death Cross’ pattern on the charts.
The Death Cross occurs when the 50-day Simple Moving Average (SMA) crosses below the 200-day SMA, indicating a potential shift to a downtrend. Currently, Ford’s stock price is trading below both the 50-day SMA ($11.90) and the 200-day SMA ($11.92), reinforcing the bearish signal.
Adding to the concerns is the recent setback in Ford’s electric vehicle (EV) plans. The company has scrapped its three-row electric SUV and delayed the debut of the electric F-150 to 2027, raising questions about its competitiveness in the growing EV market. While the E-Transit van continues to drive EV sales, the delay in new electric offerings could impact Ford’s future in this key segment.
The Moving Average Convergence Divergence (MACD) indicator, currently at a negative 0.4, further supports the bearish sentiment. The stock’s eight-day SMA and 20-day SMA, at $10.56 and $10.41 respectively, hint at a potential buying opportunity, but this is overshadowed by the overall downtrend. The Relative Strength Index (RSI) of 47.60 indicates a neutral condition, suggesting a lack of clear momentum.
With Bollinger Bands showing a range of $8.32 to $13.68, the stock is trading in the lower band, reinforcing the bearish signal. Overall, several technical indicators point toward a continued downtrend for Ford’s stock. While the E-Transit van provides some positive momentum in the EV segment, the recent setbacks and overall technical analysis suggest investors should approach Ford’s stock with caution during this challenging period.
