Ford (F Stock) needs to ride further downside before continuing the rally

Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, 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 daily chart

Ford started a rally from March 2020 low after covid19 crash. From there, we can see 5 waves up forming an Impulse Structure ending on December 13th 2021. (If you want to learn more about Elliott Wave Theory, please follow these links: Elliott Wave Education and Elliott Wave Theory). Wave ((1)) ended an impulse structure at 16.45. Then F corrected in 3 swings making a double fcorrection structure, ending wave ((2)) at 12.38. Another rally resumed from the low completing wave ((3)) at 21.49 and pullback again making a flat correction ended wave ((4)) at 19.05. Then last push higher made and ended the impulse structure and completed wave ((5)) and wave I of the leading diagonal at 25.87.

After peak, the stock dropped strongly losing more than 27% building an impulse structure. To complete the impulse, Ford needs to break 18.80 low to make 5 swings down which one we will labeled as wave ((A)). Then we should see a corrective bounce in 3 or 7 swings as wave ((B)) before turning lower again. This turn as wave ((C)) should build an impulse structure again, that means, 5 swings down are need to complete ((C)) and wave II. To conclude the whole correction as wave II we are suggesting a 15.00 – 16.00 area where Ford should continue with the rally.