General Motors (GM) released its 3Q16 earnings on October 25, 2016. Overall, its profitability remained strong due to higher retail and heavyweight vehicle sales.
GM is the third-largest automaker (IYK) in the world by sales volume. Globally, Toyota (TM) and Volkswagen (VLKAY) are ahead of GM in terms of global sales. In this part, we’ll take a look at GM’s key technical support and resistance levels for the second week of November.
This week’s support and resistance levels
Last Friday, November 4, 2016, GM settled at $31.16 per share, with a minor fall of 0.50% for the week. Last week, the price remained subdued. It’s still trading just below a key horizontal resistance area near $32.45. This resistance has to be breached in order to see fresh buying in the stock since the stock has tested this level many times lately.
On the downside, the stock is likely to find immediate support near $30.90, followed by $30.50.
Will it sustain its 3Q16 gains?
Among mainstream automobile companies, General Motors stood out with a rise of ~12.3% in 3Q16. During the same quarter, Ford Motor (F) and Tesla Motors (TSLA) traded in negative territory, falling 4.0% and 3.9%, respectively.
General Motors’ strategy to focus on highly profitable retail sales and cut less profitable fleet sales could be one of the reasons for this optimism. Any early indication of a fall in US auto sales could hurt GM’s future growth estimates and affect its valuation going forward.
In the next part of this series, we’ll look at Ford’s key technical support and resistance levels.