TSLA, F and GM Forecast – US Automakers Stabilize in Premarket Tuesday Trading

TSLA Technical Analysis

Tesla has gone back and forth in pre-market trading, but it looks like we are going to settle on opening up about where we closed during the trading session on Monday. Monday had seen Tesla drop pretty significantly, but it has turned around to show signs of life. In this environment, it looks to me like a situation where we will consolidate, but at the same time, I also think we are showing resiliency. That means we might be trying to build up enough momentum to finally break above the $370 level.

F Technical Analysis

Ford looks like it’s going to open up where it closed basically, after selling off pretty significantly on Monday. That being said, this is a situation where we are just below the 50 day EMA. And now if we can turn around and break above there, we could go looking at the $10.90 level above. If we drop from here, then the $9 level will probably be a scenario where traders tried to test significant longer term support.

GM Technical Analysis

General Motors looks like it’s going to be fairly flat as well, but again, this is a good sign after the massive selling. You don’t see pre-market dumping of this stock. The market is hanging around both the 50 day EMA and 200 day EMA indicators. And if the market were to turn around and take out the top of the candlestick for the Monday session, then I think that would be an extraordinarily bullish sign. If we drop from here, then look to the $45 level to start to offer significant support for General Motors.

All things being equal, I do think it’s worth noting that there is a dividend paid on Friday. So longer term traders are probably still holding on to this. And that dividend of 15 cents, although small, is something that a lot of holders of GM count on quarter after quarter. Keep in mind that GM is pretty much a retirement stock. People just milk that for the dividends over the years. At this point, I don’t see any real danger, although you could make an argument that we’ve dropped $45.

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