Looking at the technical picture of the Ford Motor Co. stock (NYSE: F) on our daily chart, we can see that from around mid-January, the share price moved strongly to the downside, and it is currently balancing above a key support area, between the 18.62 and 18.81 levels. Those levels mark the lowest points of December and January respectively. That said, even though the stock is showing willingness to move further south, we would prefer to wait for a break below that support area first, before getting a bit more comfortable with the downside.
A drop below the above-discussed support zone would confirm a forthcoming lower low, possibly setting the stage for a move towards the 17.58 hurdle, or the 16.56 area, marked by the low of October 29th. Initially, F might stall there for a bit, however, if the buyers are still nowhere to be found, another decline could be possible. The share price may then overcome the 16.56 obstacle and aim for the 15.51 level, which is the low of October 27th.
The RSI and the MACD are both pointing lower. In addition to that, the RSI is below 50 and the MACD continues to run below the trigger line, as it remains below zero. The two indicators support the idea of seeing further declines.
On the upside, if the stock jumps above the current highest point of February, at 21.04, that might help attract more buying interest. F could then drift to the 23.29 obstacle, a break of which may set the stage for a push to the 25.87 level, marked by the highest point of January.
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