Ford Needs To Ride Further Down Before Continuing The Rally

Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobiles and commercial vehicles under the Ford brand, and luxury cars under its Lincoln luxury brand.

Ford (F) Daily Chart

Ford started a rally from the March 2020 low after the COVID-19 crash. From there, we can see 5 waves moving up and forming an impulse structure, ending on Dec. 13, 2021.

Wave ((1)) ended an impulse structure at 16.45. Then Ford corrected in 3 swings, making a double correction structure and ending wave ((2)) at 12.38. Another rally resumed from the low, completing wave ((3)) at 21.49, before pulling back again and making a flat correction, which ended wave ((4)) at 19.05. The last push higher ended the impulse structure, and it completed wave ((5)) and wave I of the leading diagonal at 25.87.

After the peak, the stock dropped strongly, losing more than 27% before building an impulse structure. To complete the impulse, Ford needs to break the 18.80 low to make 5 swings down, which we have labeled as wave ((A)).

From there we should see a corrective bounce in 3 or 7 swings in wave ((B)) before it turns lower again. This turn as wave ((C)) should build an impulse structure again, which means 5 swings down are needed to complete wave ((C)) and wave II. To conclude, we believe the 15.00-16.00 area is where Ford may continue with the rally.