General Motors Company (NYSE:GM) – As GM Biedex.coms Move Higher, This Chart Shows A Base Forming

Summary:

  • General Motors Company (NYSE: GM) shares traded over 7 percent higher Friday morning after raising guidance.
  • After slipping from its highs, we believe the stock is now building a base.

General Motors (GM) Stock Weekly Chart

Management raised its guidance for this year’s earnings to $6.50-7.00 per share, well above the average forecast amongst Wall Street analysts of $5.92.

CEO Mary Barra explained that, “Our focus is on capitalizing on the new trucks we have out there, and also on cost reduction.” She also highlighted plans to expand its reach in China and roll out Cadillac as its flagship electric vehicle brand.

Our analysis is that the stock is building a base. We expect lower price action in the short term and higher prices in the intermediate term. In analyzing the market cycles for GM, we can see the stock is approaching the declining phase of its current cycle.

In the near term, we expect a pullback to around $35 by Feb. Beyond that, we see a more favorable period, with upside potential of around $40 by the spring.

Related Links:

Strong GM Guidance Boosts Auto Sector

Truckin’: Auto Sales Pivot Away From Cars In 2018

The preceding article is from one of our external contributors.
It does not represent the opinion of Benzinga and has not been edited.

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