NEW YORK (Real Money) -- It may be time to put any bullish view on auto stocks into reverse. Ford Motor (F) has really struggled over the past three months. While some may love the near 4% yield, it is about to become even more attractive. Despite its struggles, Ford is still flat year to date. And it has underperformed compared to the S&P 500 -- not the end of the world, but if we look closer at recent price action, continued concerns are justified.
Ford has been in a clear downtrend since March highs. Recently, a bearish price channel developed providing very short-term swing trading opportunities off the top and bottom of this channel. This action has led Ford to fill the small gap left from the beginning of February. In theory, Ford should have at least bounced off that gap fill, but that isn't what we are seeing. Instead, price has broken below the previous gap.
I still see a possible bounce back to $15.40, but anything beyond that would be a gift for those stuck in a long position and needing an exit or a point to enter a hedge position. The only real driver I can see for bulls is the Relative Strength Index. Even as price is making new lows, the RSI is holding lows from the last month. Unfortunately, we can't say the same for the slow stochastics. It is a bit of a reach to get too bullish, though.