Tuesday, 2 February 2016

F, RACE, TSLA - car makers all wrecked

With the broader market closing significantly lower, the automotive industry was under particular pressure, Ford (F), Ferrari (RACE), and Tesla (TSLA), settled lower by -4.6%, -12.3%, and -7.3% respectively. Near term outlook offers a moderate bounce, but the broader trend remains fiercely bearish.

F, daily

RACE, daily

TSLA, daily


F: next support is the psy' level of $10, and then $8. If sp'1600s within 2-4 months, then the 8s look probable.

RACE: lousy earnings, with an outlook that upset the market. The IPO price of $52 is now a long way higher, and it would seem if sp'1700/1600s in the next few months, RACE will continue falling to the 25/20 zone.

Note the the opening black-fail candle from IPO day, as is often the case with over-priced new issues.

TSLA: once a beloved momo stock, TSLA is really struggling. Broader downside target is the $120/100 zone.

*of the three stocks, I favour Ford in the long term. I'd be very tempted in the 8s, with a multi-year upside target of $24. Clearly though, that will be a good 3-4 years away, and assumes renewed broad upside across world equity markets into 2019/20.