TSLA, F and GM Forecast – US Automakers Look to Stabilize on Wednesday

TSLA Technical Analysis

Tesla looks like it is set to rise slightly based on pre-market trading on Wednesday after selling off pretty viciously just a couple of weeks ago. Ultimately, this is a market that is hanging around the 50 day EMA and I think there is a certain amount of technical analysis that can be done on that alone, as traders do tend to pay quite a bit of attention to that indicator. Ultimately though, this is a market that has broken out of a rectangle, pulled back to the previous level and now we are questioning whether or not we can continue to the upside.

F Technical Analysis

Ford looks like it’s going to open up pretty much flat on Wednesday, as we continue to trade right around the crucial 200 day EMA. The 50 day EMA is starting to creep in that direction as well, perhaps setting up the so-called Golden Cross, a longer term buy and hold signal.

Ford is a company that pays a dividend of 15 cents a share. And of course, it is a long-term hold for a lot of funds and retirement accounts, so that’s something to pay attention to as well.

GM Technical Analysis

General Motors looks like it is going to rally a bit in the early hours of Wednesday, but we’ll have to wait and see. We just got the golden cross here again, where the 50 day EMA breaks above the 200 day EMA. And this is a stock that quite frankly, looks like it’s in the midst of some type of consolidation based on the $50 region. As long as we can hang in this area, I think if the rest of the stock market continues to do fairly well, it will transfer over to GM.

Again, this is a major holding of retirement funds and longer term buy and hold type trading. 12 cents is your dividend here. I think a lot of people, although it’s a relatively smaller dividend than Ford, probably hang on to General Motors for that reason alone. Nonetheless, it does look like we are at least going to try to fight towards the upside.

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