US Automakers Forecast: Quiet Premarket Sets Up Key Support Tests

TSLA Technical Analysis

Tesla looks like it’s going to be fairly quiet at the open on Friday, maybe slightly positive, but short-term pullbacks, I think, open up the possibility of buyers looking at this through the possibility of finding value anytime we drop. The 200-day EMA is, for me at least, a significant support, and if the market were to take off from here, we could go looking to the $435 level.

The market remains very choppy, and I do think that it has plenty of support underneath it, but what you’re looking for here are short-term drops to take advantage of. I don’t know that we have a lot of momentum; this looks a lot like a market that’s just settling into a range.

GM Technical Analysis

GM looks like it’s trying to basically open where it closed the previous session. We did form a nice-looking hammer for Thursday, so we’ll see whether or not this ends up being a buying opportunity. It’s worth noting that the 200-day EMA is a few dollars below where we are right now, so clearly trend traders and technical traders will probably be interested in this area. If we can break to the upside, watch the 50-day EMA right at $78.61, but getting above there could open up a move all the way to $85, as GM has been in a range since the end of last year, really.

F Technical Analysis

Ford looks like it’s going to be slightly positive as we are trading below the 50-day EMA but above the 200-day EMA indicator, and it looks like we’re just squeezing here. Whether or not we can truly rally from here remains to be seen. We’re roughly at the 61.8% Fibonacci retracement level from the rally in May. I don’t know if that makes much difference, but I’m looking at this through the prism of perhaps a value play.

This is all based on trucks more than anything else; that’s really Ford’s bread and butter. If we can break above the 50-day EMA, Ford should continue to go higher, maybe towards $15. Gasoline prices have been drifting a little lower in the US, so that might be part of what drives truck sales as well, so there is a longer-term argument to be made here for a bit of a rally.