Stock Analysis: General Motors (GM)
As most of you probably know, General Motors (GM) produces and sells cars. You may or may not have also known that GM also provides financial services (e.g., consumer vehicle financing, residential mortgage services, and insurance coverage).
In recent news, they’re hoping to gain some leverage off the the new Transformers movie, where four GM vehicles will appear. Good movie reviews and box office statistics for Transformers should have a small long term positive impact on GM’s brand image. On Monday, General Motors announced that it would offer qualified buyers no-interest financing and rebates.
GM has had a strong run in the last month, going from 29.45 at its low to its high today at 36.84. You can see from the competitor charts that Ford has had a good run as well while Toyota, Daimler, and Honda have stagnated.
Key investing basics:
- Price has reached a crucial resistance point at the 36.68 level
- RSI indicates the stock is overbought
- High volume in last month
If price breaks through resistance, expect another strong breakout. Otherwise, price may fall back to the 32.5 support levels. Either way, expect a major move in the near future.