Five Star Stock Watch: General Motors (GM)
The company: General Motors
Ticker Symbol: (NYSE: GM)
Sector: Consumer Goods
Industry: Auto Manufacturers
General Motors designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. The company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Opel, Holden and Vauxhall brand names, as well as under the Alpheon, Jiefang, Baojun and Wuling brand names.
It also sells cars and trucks to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, the company offers connected safety, security and mobility solutions, and information technology services.
The company, through its subsidiary, General Motors Financial Company, Inc. provides automotive financing services and lease products through GM dealerships in connection with the sale of used and new automobiles that target customers with sub-prime and prime credit bureau scores.
Take a look at the one-year chart of General Motor's stock below with my added notations:
GM may have formed a double top price pattern (red) over the last 4 months. Double tops are reversal patterns and are as simple as they sound: Rallying up to a point (T), selling off to a support, and then rallying back up again to approximately the same top (T).
As with any price pattern, a confirmation of the pattern is needed. GM would confirm its pattern by breaking below the $34 support (blue) that has been created by the double top pattern. A break above the $38 resistance would negate the pattern.
General Motors Company is set to release quarterly earnings on October 30.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.