Shares of Ford (F) - Get Report  on Thursday were down more than 7.5% to $9.52 in midday trading. The decline followed disappointing second-quarter earnings.

The automaker reported non-GAAP earnings of 28 cents a share, missing estimates by 3 cents. Automotive revenue of $35.76 billion dropped 40 basis points year-over-year but beat analysts' estimates by $550 million. Total revenue of $38.9 billion topped expectations by roughly $400 million.

But weighing on the stock is management's outlook. The company is looking for full-year earnings of $1.20 to $1.35 a share. Even at the top of the range, these results come up short of consensus estimates, which call for $1.40.

It was a somewhat disappointing quarter for Ford, although it was far from a disaster. It probably doesn't help that Daimler (DDAIF)  recently reported not-so-hot results and Nissan (NSANY) reported that income fell 99% in its most recent quarter. General Motors (GM) - Get Report is down about 1% in sympathy but doesn't report until early August.

Ford's decline delivers a bearish blow to investors, despite the charts that just a day ago were looking so healthy.

The potential breakout is ruined, while uptrend support has now given way.

Let's take a closer look at the stock.

Trading Ford Stock

Daily chart of Ford stock.

On Wednesday, Ford stock was rallying into resistance between $10.35 and $10.40. Bulls were hopeful that a decent quarterly result could spring the shares free, triggering a big-time breakout in a stock that's been doing pretty well since its December lows.

But that's not what happened -- not even close.

Shares gapped below the 20-day and 50-day moving averages, as well as uptrend support (blue line) that's been in place since the December lows.

The move is definitely a defeating blow and may very well cause investors to throw in the towel. It's been a good run, but the uptrend is broken and more losses could be on the way.

Depending on where support comes into play, that will determine the extent of the damage.

The level $9.40 has been significant over the past 12 months. Helping is that the 38.2% retracement for the 52-week range is at $9.36.

Those who are looking to buy on the dip may consider a position near this mark for a reasonable risk/reward. If it holds, investors can look for a bounce back up to the 50-day moving average.

If it fails, buyers can cut their losses and look for a possible test of the 200-day moving average. The bottom line: See if Ford falls to ~$9.40 and how it trades from there.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.