GM Stock Violates Key Resistance of $38.20: What’s Next?

Last week, General Motors (GM) stock settled at $38.88, with a 5.1% gain from the previous week. In the previous week, the company’s stock fell ~1.0%. As of September 15, GM stock had risen ~11.3% quarter-to-date and ~11.6% year-to-date. According to 2016 sales volumes, GM was the largest automaker (IYK) in the US market, ahead of companies Fiat Chrysler (FCAU), Toyota (TM), and Ford Motor (F).

In August 2017, General Motors’ US sales rose ~7.5% YoY (year-over-year). According to recent data compiled by Autodata, GM’s truck sales rose 16.5% YoY. However, its small car sales fell ~13.2% YoY in August 2017.

In July 2017, GM’s US sales figures suggested a significant drop of 15.3% in its total US sales, including a ~14.4% decline in its July retail sales. Strong gains in GM’s August truck sales could be the key reason for its stock soaring in September so far.

Last Friday, GM stock violated a key prior resistance level of ~$37.70, which should act as an immediate support level this week. On the upside, there is no major resistance below $41.85, which is also an all-time high for the stock. In the next part, we’ll find out how Ford stock traded last week.