General Motor will reach new highs?

7 ม.ค. 2022

In 2021 GM has a long-term uptrend, with short-term sideways and downtrends.

From September 2021 until today, the stock has increased significantly, reaching new highs at the beginning of 2022; however, around the price area of ​​65, the stock find a resistance.

Currently, the uptrend is still healthy, especially if prices remain above the support in area 59 (gap zone).

In the following chart it is possible to analyze the movement of GM against its reference benchmark SPX.


GM 13-period and 50-period moving average with positive inclination (positive momentum), the shorter moving average probably will cross the longer moving average to the upside.
SPX cross downside the 13-period moving average.
The Relative Strength Index is rising and the moving average has a positive slope.
Given these considerations, the GM stock has positive momentum against the S&P 500 index.


COMPANY DESCRIPTION
GM is one of the world's leading automotive companies. The company's brands include Chevrolet, GMC, Cadillac and Camaro. Auto sales account for over 90% of turnover, with the remainder being financial services.
General Motors is focused on traditional cars but is also positioning itself to participate in the revolution that could come from electric cars.
Mainly active in the United States, where it generates over 80% of its turnover.

CONSIDERATIONS ON THE COMPANY
General Motors closed the third quarter of 2021 with data above expectations, but in contraction due to the problem of the lack of microchips and the weak warehouse.
Revenues fell to USD 26.8 billion, while adjusted EPS fell to USD 1.5. However, management have revised the previously reported guidance upwards, expecting adjusted EBIT of USD 11.5-13.5 billion and adjusted EPS between USD 5.7 and USD 6.7, thanks above all to the agreement reached with LG Electronics .
General Motors recently announced USD 27 billion in electric car investments by 2025 (USD 7 billion more than previously planned), with the goal of launching 30 models worldwide.



Dr . Cunti Mattia, CFTe®, EFA


** WARNING **
The content of the analysis just carried out is the result of personal opinions and does not constitute a solicitation to buy or sell any financial instrument.
These views therefore do not constitute advice or a recommendation to invest or disinvest.
The analyzes are for informational purposes only, and do not constitute personalized advice, as the writer does not know the personal characteristics of any of the readers, especially income flows, ability to bear losses, equity consistency.