stock
Ford Motor (F-N, Monday’s close: US$14.02) experienced a sharp decline from $23.41 in January, 2022 to $9.95 in July (A–B), followed by a recovery rally to $15.65 the next month (C). The stock then consolidated in a horizontal trading range, mostly between $9 and $15 (dashed lines), for more than three years.
Ford subsequently broke out above the upper boundary of this range and became overbought (D), trading well above its 40-week Moving Average (40-wMA). The stock has since started a correction toward its average. Only a sustained decline below US$13.00-13.50 would be negative.
A decisive rise above US$15.50 would suggest the resumption of the uptrend and signal Point & Figure targets of US$17.50 and US$19.00. The large trading range (dashed lines) also supports the potential for higher targets.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com