TSLA, F and GM Forecast – Automakers Look Positive Overall

TSLA Technical Analysis

The Tesla pre-market trading suggests that we are in fact going to recover a bit which makes sense because we are back to the same situation where drama between Elon Musk and Donald Trump sends the market dropping six, seven, eight percent, and then it bounces because the fundamentals, of course, have not changed. With that being said, I do believe that we bounce. We probably head back towards $315 and then eventually $360. This is a market that I would be very interested in, especially if the broader market itself has a good day, that should bode well for Tesla anyway. And in this environment where we have these nonsensical panic moves, and this will be the third one, the Tesla market offers a lot of opportunity.

F Technical Analysis

Ford looks like it is going to open a little bit higher than it closed. Pretty quiet trading though, but it does seem as if it is trying to break out, perhaps rallying enough to fill a gap, which would be all the way up to the $13.75 level. That would take some time, but right now we just recently had the so-called Golden Cross when the 50-day EMA breaks above the 200-day EMA, so that of course, will have people talking also. A nice volume spike with a shot higher suggests that Ford has somewhere to be.

GM Technical Analysis

General Motors looks like it’s ready to rally a bit as well. And it is fighting pretty significant resistance above at the $54 level. We’ll have to wait and see if it can break above there eventually. But as things stand right now, I think you’ve got a situation where you have to look at this through the prism of a market that is trying to break out to the upside right along with the other US manufacturers. So really, at this point, I just don’t see an argument whatsoever for traders to short this market, especially with earnings coming on the 22nd. So, we’re not that far away from it. There is support at the $50 level. So we’ll have to wait and see. Pre-market trading suggests maybe basically a flat open, but it had a nice shot higher over the last couple of sessions.

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