Detroit’s ‘Big Three’ Auto Makers Set to Compete Tesla Inc (NASDAQ: TSLA) by accelerating plans to transition to electric vehicles.
The electric future for Ford Motor Company (NYSE: F), General Motors Company (NYSE: GM) and Stellantis (NYSE: STLA) have made the companies popular with traders and investors, and all three stocks have recently hit new highs.
After a period of consolidation, automakers appear to be able to jump ahead in their earnings release dates.
Ford is expected to release its results on April 28, and General Motors and Stellantis will do so on May 5.
The Ford chart: After hitting a three-year high of $ 13.62 on March 15, Ford’s stock consolidated and set up a right shoulder in a bearish head-and-shoulder pattern. On Tuesday, the stock reacted to the trend and fell 6% during the day.
Bearish volume was not substantial, however, and a support level at $ 11.30 prevented the stock from completing a measured decline of 18% that might have been possible otherwise. The measured movement of the head and shoulders pattern is calculated by measuring the distance from the neckline to the top of the head in a head and shoulders pattern.
Ford shares are trading at the eight-day exponential moving average (EMA), but below the 21-day EMA, which is bearish. On Thursday morning, the stock attempted to break through resistance above the $ 12 mark but was rejected.
The bulls want to see bullish volume enter the stock to help it regain its support at $ 12.07. It would also help Ford’s shares trade above the eight-day EMA. If Ford’s stock can regain the $ 12.07 level, it has room to drop to $ 12.92.
The bears want to see Ford stock continue to reject the $ 12 level. If the stock cannot regain that level, it could retreat and retest support at $ 11.30.
See also: Chip Shortage Extends Ford Production Shutdown at 5 North American Plants
General Motors chart: On Tuesday, GM’s stock lost support at $ 56.88, pushing the eight-day EMA below the 21-day EMA, which is bearish. Support at $ 54.50 held, and on Wednesday GM was able to bounce back to over $ 56.88 and Thursday morning GM retested that level as support and held on.
GM’s stock is trading slightly below the eight-day and 21-day EMAs, which is bearish, but the stock could easily recover both as the bullish volume increases.
The Bulls want to see $ 56.88 hold and GM appear to win back the EMAs. This would cause the eight-day EMA to revert above the 21-day EMA, which would give the bulls more confidence. If the stock can continue to hold above its support level, it has room to return to its new all-time high of $ 63.44 reached on April 6.
The bears want to see GM continue to test the support at $ 56.88 to weaken it. If the stock cannot maintain the support level, it could test the $ 54.50 area again.
The Stellantis chart: Like Ford and GM, Stellantis stock fell on Tuesday. Presumably GM and Stellantis have shown sympathy with Ford’s stock reaction to the head and shoulders trend. Stellantis also left an overhead gap on Tuesday, which is expected to be closed in the coming trading days. The gap coincides with a resistance level at $ 17.65 and if the stock can close all the gap, it will return to that level as support.
Stellantis is trading below the eight-day and 21-day EMAs and on Thursday the eight-day EMA fell below the 21-day EMA. An upward movement to fill the void would reverse the trend.
The bulls want to see Stellantis recover $ 17.65 for a move higher to test resistance at $ 18.52. If Stellantis can jump above that level, it has room to climb back up to retest the stock’s three-year high at $ 19.50.
The bears want to see the eight-day and 21-day EMAs continue to push Stellantis stock lower until it loses support at $ 16.70.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.