TSLA, F and GM Forecast – US Automakers a Bit Quiet in Premarket

TSLA Technical Analysis

Tesla looks like it is going to be a little bit positive in the opening hours here on Wednesday, as pre-market trading has been slightly positive. Short-term pullbacks continue to be buying opportunities in what has been a very strong uptrend. And I believe that the $400 level will continue to be crucial and important.

I have no interest in shorting Tesla, and as the 50-day EMA is racing to get to the $400 level, I think that will become an important battleground in any selloff. To the upside, the $475 level continues to be a short-term ceiling.

F Technical Analysis

Ford looks like it will be ever so slightly positive at the open here, but it did have a pretty tough day on Tuesday, so we’ll see whether or not if it can fight back. It is sitting at a previous resistance barrier, so did we just break out, pull back, and get ready to bounce? That’s possible. That’s actually very possible at this point. So, we’ll have to wait and see. But I do recognize this as a market that could grind its way back towards the $12.50 level.

But you should keep in mind that typically speaking, Ford is a bit of a slow mover. So, you’re not looking for explosive moves here to say the least. Keep in mind that there was a fire at an aluminum plant that has to do with the Ford F-150. So, production slowing down is basically what happened on Tuesday. It wasn’t anything as far as demand. It’s more of a supply concern.

GM Technical Analysis

General Motors looks like it will open a little bit positive during the trading session here on Wednesday as we are dancing around the 50 day EMA. Ultimately, I think this is a situation where you have to look at this through the prism of finding value on these dips. And if and when you get that value, you have to take advantage of it. All things being equal, I don’t see this as a market I want to sell anytime soon. But if we were to break down from here, $54 would be your next major support level based on previous structure.

To the upside, we could grind our way back to the $62 level, but the recent selling has started to accelerate. So, I think you have a situation where traders might be collecting some profit as we start to head towards the earnings numbers on the 21st of this month, which really isn’t that far away, about two weeks. So perhaps that’s part of what’s going on as well. Ultimately, GM looks bullish despite the fact that we’ve had a little bit of a pullback.

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