close icon

Ford Might Lose a Third Before It Is Worth

Ford Motor Co. shareholders were among the most miserable market participants during the crash of 2007-2009, since the stock plummeted to slightly above a dollar a share in November 2008. Fortunately, the company managed to survive and in January 2011 was already trading close to the 19-dollar mark. The problem is that Ford has been going nowhere but south ever since, and, while near 12.50, the Elliott Wave Principle suggests it might fall even more, before it is worth buying again.
ford 30.8.16
The theory states the direction of the trend could be recognized by spotting a five-wave sequence, called an impulse. The rally from $1 to $19 between November 2008 and January 2011 could be seen as such. But every impulse is followed by a three-wave correction in the opposite direction, before the larger trend resumes. That is what we believe has been in progress since 2011 – an (a)-(b)-(c) zig-zag correction. Wave (a) is another impulsive pattern, followed by a deep wave (b). Wave (c) does not look like an impulse so far, so we could expect it to develop as an ending diagonal.
If this is the correct count, Ford stock might lose more than 30% of its value from now on, because the bears seem to be aiming at the 61.8% Fibonacci level, which, in terms of price, means levels around 8 dollars a share. In our opinion, that is the area, where Ford stock would be worth investing in, because once the retracement is over, the uptrend should resume. Patience is key.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

AMN Healthcare Stock to Suffer a 2020-Like Drop

AMN Healthcare Services provides workforce and staffing solutions to healthcare facilities in the U.S. The company is relatively small with a market capitalization of less than $4 billion. However, small companies can make for excellent returns if one happens to identify the winners. And indeed, between late-2011 and early-2020, AMN stock from under $4 to…

Read More »

Zoetis Stock Getting Ahead of Itself, Invites Correction

Based in Parsippany, NJ, Zoetis Inc. is an animal medicine and vaccine developer and manufacturer. The company went public in 2013 and has been enjoying steady growth since. With the stock currently above $160 a share, Zoetis holds a market cap of nearly $80 billion. For a profitable and growing company like Zoetis, a rising…

Read More »

CBOE Stock Looking Good After a Record Year

CBOE Global Markets Inc. is an equities, options and futures exchange operator in the U.S. and Europe. The company traces its roots back to Chicago in 1973, when it practically invented options trading in its present form. CBOE is literally part of the very infrastructure of modern financial markets. So it is not surprising that…

Read More »

Novo Nordisk Bulls Have an Elliott Wave Problem

Novo Nordisk A/S is a Danish pharmaceuticals major with a market cap of over $160 billion. People need their medication even in recessions, so the company’s business wasn’t as affected by the 2020 crisis as most other industries. Novo Nordisk remains a top-notch pharma with consistent profits and revenue and no debt whatsoever. And the…

Read More »

Lockheed ‘s Correction Still Unfolding as Expected

Almost a year and a half ago, in July 2019, we wrote that Lockheed Martin is likely “setting the stage for an unpleasant surprise.” The stock had just reached a new all-time high and was trading at $370 a share. Optimism was in the air and analysts were more bullish than ever. An indeed, fundamentally,…

Read More »

Campari Bulls to Get a Serious Hangover Soon

Campari is an Italian liquor and spirits maker with traditions dating back to 1860. The company’s stock price plunged sharply in March along with the markets in general and then recovered just as quickly to new records by year-end. As shares hover near all-time highs, however, dark clouds appear to be gathering over the spirits…

Read More »

Experian to Drop 35% Before Uptrend Can Resume

Like most technology firms, Experian adapted to the new work-from-home environment relatively quickly. The Irish data and analytics company even managed to grow its revenue in 2020, even though its EPS didn’t change much from 2019. After the initial coronavirus selloff in March, the stock swiftly recovered, as well. EXPN.L is currently hovering around 2900…

Read More »

More analyses