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Key Technical Levels in General Motors Stock before 4Q17 Earnings

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Key technical levels

In the previous part of this series, we saw how General Motors’ (GM) valuation multiples are trading lower than its closest peer Ford Motor (F). While valuation multiples could help investors make investment decisions, it’s also important to be aware of the key support and resistance levels.

Investors can use these key technical levels to refine their entries and exits from a stock. Let’s take a look at GM’s important technical price levels before its 4Q17 earnings event.

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GM’s technical levels

As of January 29, 2018, GM stock was trading at $43.02 on a mixed note. The stock posted its all-time high of $46.76 in October 2017, which could act as a key resistance level. An immediate resistance could be seen near $44.10.

Its price action is showcasing a minor weakness. The price has been moving with a sequence of lower lows and lower highs lately. Immediate support lies near $41.80, followed by a key support area near $38.20.

The price was still trading well above its 200-day SMA (simple moving average) level of $38.65, reflecting a medium-term positive trend. However, on the daily price chart of GM stock, its 14-day RSI (relative strength index) indicator was 48.2, suggesting a neutral bias in momentum.

Auto industry’s 4Q17 earnings

The US auto industry’s (XLY) 4Q17 earnings season began with Ford’s (F) and Fiat Chrysler’s (FCAU) 4Q17 results on January 24 and January 25, respectively. Electric carmaker Tesla (TSLA) is expected to announce its fourth-quarter results on February 7, 2018.

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