Since early January 2011, the U.S. auto makers have been under pressure. Stocks such as Ford Motor Co.(NYSE:F), General Motors Co.(NYSE:GM), and even Tesla Motors Inc.(NYSE:TSLA), have been under pressure. Please note that the decline in all of these leading U.S. automakers came after general Motors was upgraded by most major Wall Street firms in December 2010. We can only wonder who was selling those stocks into the new year?
Ford Motors stock remains weak on the daily chart at this time. The stock will still have daily chart support around the $15.25 area. This is a level where the stock bounced in early February and this level should still be respected as an important support area. Should the Ford stock fail to hold and trade above the $15.00 area the stock could decline down to the $14.00 level which is the next major support level on the daily chart.
General Motors stock traded as high as $39.48 a share on January 6, 2010. The stock has steadily traded lower over the past six weeks and is now trading around the $36.50 area. Traders and investors should watch the $35.00 area as being the next important daily chart support level. This is an area on the chart that has been tested a few times as resistance and later as support, therefore, it should be a solid support level in the near term.
Tesla Motors stock topped out in early December 2010 at $36.42 a share. The stock has declined sharply lower from that high made two and a half months ago. Traders and investors will have support for this stock around the $22.50 and $20.00 areas. Should the stock rally or bounce higher from its current level traders should watch the $26.50 and $28.00 levels as strong daily chart resistance.