GM stock in December
During the week ended December 8, General Motors (GM) stock settled at $42.02 with an ~1.8% drop from the previous week’s closing price. In the previous week, GM stock fell 3.8%.
In November 2017, GM traded on a mixed note and ended the month with minor gains of ~0.3% against a 2.8% rise seen in the S&P 500 Index (SPY) (SPX-INDEX).
Weak November sales
In November 2017, General Motors’ home market sales fell 2.9% YoY (year-over-year) to 245,387 units. The company cut its vehicle deliveries to daily rental car companies, which drove its fleet sales down 13% during the month.
GM’s US market retail sales remained nearly flat at 197,340 vehicle units in November. This could be the primary reason why GM stock traded on a weak note last week.
In the last few quarters, GM has reported improvements its profitability despite a slowdown in US auto demand. GM’s key focus on profitable retail sales has helped it to steer toward its higher profit margins during this timeframe.
GM has accelerated its autonomous vehicle and electric vehicle development programs. It plans to launch about 20 new all-electric vehicles by 2023 to take on peers such as electric carmaker Tesla (TSLA).
During the week ended December 8, GM stock tested an important support level near $41.60, which should act as an immediate support area this week as well. On the upside, no major resistance level lies below $44.90. An immediate support could be seen near its 50-day SMA (simple moving average) at $43.10.
GM’s 14-day RSI (relative strength index) was below the line of equilibrium near 39.7, suggesting weakness in its underlying momentum.
Continue to the next part to see how Ford stock traded last week.