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

TSLA Technical Analysis

Tesla looks like it’s going to open up a little bit higher than it closed on Thursday as it looks like it’s going to try to take on the 50 day EMA, possibly even the 200 day EMA, which is closer to the $290 level. The market is in the throes of a potential bottoming pattern after a lot of drama and a lot of selling. And one would have to think that longer term traders will more likely than not look at this through the prism of value.

Tesla has bounced quite nicely, but I think at this point, we’re probably still in the same consolidation range. So overall, I would say we’re still in the base building pattern.

F Technical Analysis

Ford, it looks like it’s going to be a little lower at the open on Friday, but really at this point in time, I think you’ve got a situation very much like Tesla. We are trying to form a little bit of a consolidation range. You could even go so far as to suggest that we are trying to form an inverted head and shoulders or something like that. It is a sloppy move, but with earnings coming on the 5th of May, we’ll have to see how this plays out as it is close. But it certainly looks like it is trying to find the floor at these extremely low levels.

GM Technical Analysis

General Motors looks like it’s going to drop a bit at the open on Friday as well. I think all things being equal, the 50 day EMA offers a little bit of a headache right along with the 200 day EMA. We have just formed the so-called death cross, when the 50 day EMA crosses below the 200 day EMA. But quite frankly, I normally find that it is closer to the end of the downtrend than it is a continuation.

If we turn around and break above the 50-day EMA and then again, the 200-day EMA, then I think we may go looking to fill the gap, which would be right around the $50 level.

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