Key technical levels
In the previous part of this series, we learned how General Motors’ (GM) valuation multiples are trading lower than its closest peers. While valuation multiples could help investors in taking better investment decisions, it’s also important to look at the key technical level.
Investors can use these technical resistance and support levels to refine their entry and exit from a trade position. Let’s take a look at GM’s important technical price levels ahead of its 2Q17 earnings event.
GM’s technical analysis
On July 17, GM stock was trading at $36.38 on a positive note. After testing a key support level near $31.92 in May 2017, GM’s stock price bounced back. Since then, it has been trading on a bullish note. An immediate support lies near $34.60.
On GM stock’s daily price chart, its 14-day RSI (relative strength index) indicator is within the overbought territory at 72.2, reflecting strength in the momentum.
On the upside, the price may face immediate horizontal resistance near $36.80.
An upward stock price movement could see resistance around the resistance level, and a downward price movement may hit a roadblock around the support level.
Auto industry’s 2Q17 earnings
The US auto industry’s (IYK) 2Q17 earnings season will begin with Harley-Davidson (HOG), which is set to report its 2Q17 results on July 18. Please read What Analysts Predict for Harley-Davidson’s 2Q17 Earnings to learn about analysts’ estimates for HOG.