TSLA, F and GM Forecast – US Automakers Look Soft in Premarket Trading

TSLA Technical Analysis

Tesla looks like it’s going to open a little bit negative on Friday, but really, there is nothing to worry too much about. It’s a market that is in the midst of consolidation, and this won’t change that.

The 50-day EMA sits down at the $420 region and is rising, so I think that is support. It makes a certain amount of sense that it could offer support, considering that it had been supported previously in that area. Even if we were to break down below the $420 level, the $400 level underneath has a gap, and I think it would attract a certain amount of headline trading if nothing else.

F Technical Analysis

Ford looks like it’s going to open a bit softer at the Friday bell, but really at this point in time, the market had shot straight up in the air. Now we are looking at a dividend, ex-dividend date coming up on Monday, and that is something worth paying attention to. It has, according to recent headlines, halted its F-150 Lightning production due to a supplier fire. It’s also worth noting that the electric version of its F-150 truck is being considered for cancellation. There just isn’t enough demand, and anybody who’s ever driven a truck in the United States can tell you exactly why. The F-150 is by far the world’s most popular truck, and getting an electric version of it just doesn’t make sense.

GM Technical Analysis

General Motors looks like it’s going to open ever so slightly to the downside on Friday, but it must be kept in mind that this market has been explosively bullish to get up here. So, I think a short-term pullback probably makes quite a bit of sense. There are several areas I’ll be watching, including $66, $64, and then finally the 50-day EMA at around $61.80, depending on how long it takes to get down there. I think this is a market you don’t want to short. There is plenty of upside to it; it’s just that we are a little overdone, and some value needs to be brought back into the market for fresh money to come in and start buying GM stock.

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