Five Star Stock Watch: Ford Motor Company

Shares of Ford have been in a constant three week slide, falling from a peak of around $16.75 in January to a low of $14.50 this week.

In reality, Ford's sell-off started back in October when the stock hit $18 a share.

The question for current Ford investors is: When might the slide be coming to an end?

For those looking to get into the stock, is now the right time to buy?

The company: Ford Motor Company

Ticker Symbol: F

Sector: Consumer Goods  

Industry: Auto Manufacturers - Major

Ford Motor Company engages in the development, manufacture, distribution, and service of vehicles, parts, and accessories worldwide. The company operates through two sectors, Automotive and Financial Services.

See also: Five Star Stock Watch - Apple

The Automotive sector offers vehicles primarily under the Ford and Lincoln brand names. The Financial Services sector offers various automotive financing products to and through automotive dealers.

Please take a look at the one-year chart of Ford below with added notations:

The pattern outlined on Ford is a downsloping channel. The channel support is relatively well defined being that it has been tested on three different occasions. The resistance side is still a bit in question.

A bounce off of channel support should get the stock moving back toward the channel resistance and that's where the true test of Ford's trend will be at. Turn back down, and lower lows should be reached. However, a break through the channel resistance should mean a renewed uptrend.

See also: Five Star Stock Watch - eBay

Ford isn't set to release earnings again until April 2014.

No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!