Ford stock signals trouble with Death Cross: Are we in for a bumpy road? – Ford Motor (NYSE:F)

Ford Motor Co F has gone through a difficult phase, Death Cross on the charts. The stock has been on a downward trend, falling 8.7% year-to-date and experiencing a sharp 19% decline in the last month.

This technical signal indicates a bearish trend. For this reason, investors should buckle up.

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Ford Roadblocks for electric vehicles

In a recent turn of events, Ford has hit the brakes on its ambitious electric car plans. The company has abandoned its three-row electric SUV and pushed back the debut of the electric F-150 to 2027.

While the E-Transit van continues to boost electric vehicle sales, the delay in new electric offerings raises concerns about Ford's future in the electric mobility race.

Also read: Ford's E-Transit van could prove a short-term goldmine as Blue Oval delays launch of new electric vehicle to 2026

The Death Cross Dilemma

The Death Cross, where the 50-day SMA falls below the 200-day SMA, spells trouble. Ford's current share price is at $10.92 and below its 50-day SMA of $11.90 and the 200-day SMA of $11.92, suggesting possible further declines.

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The Moving Average Convergence Divergence (MACD) indicator with a negative value of 0.4 reinforces the pessimistic forecast.

Ford shares Stuck in a speed trap

Ford shares are stuck in a stagnation zone with slight selling pressure.

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The 8-day SMA and 20-day SMA at $10.56 and $10.41, respectively, suggest a buying opportunity, but it is overshadowed by the overall downtrend.

The Relative Strength Index (RSI) of 47.60 indicates a neutral condition and suggests a lack of clear momentum rather than an oversold or overbought market.

Since the Bollinger Bands indicate a range of $8.32 – $13.68, the stock is trading in the lower range, indicating a bearish signal.

Navigating rough terrain

Ford stock is currently navigating difficult terrain, with several technical indicators pointing to a continued downtrend. While the E-Transit van provides some positive momentum to the EV segment, the broader technical signals and recent pullbacks suggest investors should be cautious on Ford stock.

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