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General Motors

Market Opportunities - 28/07/2021

28 July, 2021

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

General Motors weekly uptrend opportunity based On 1.00 Lot Calculation:

  • General Motors. engages in the designing, manufacturing, and selling of cars, trucks and automobile parts. It also provides automotive financing services through General Motors Financial Company, Inc. The company sells vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Wuling, Maven, and OnStar brands.
  • EVENT: The Earnings report for Q2 will be published on August 4th (premarket). Expectations: 1.87 in earnings per share and 31.691B in revenues. The company beat earnings expectations every single time in the last 8 quarters.
  • GM already announced an increase in car sales in Q2. The company sold 688,236 vehicles in the U.S. in the second quarter of 2021 – an increase of 40 % compared to a year ago and sustained robust momentum in China where it delivered more than 750,000 vehicles, an increase of 5.2% from a year earlier.
  • General Motors is heavily investing in EVs and plans to become EV leader. GM has announced $35 billion in research and development for batteries and autonomous driving software, as well as seven new manufacturing sites exclusively for EVs. With this investment, GM expects to release up to 30 new all-electric models by 2025. Also the company plans to exclusively offer electric vehicles by 2035, ending production of its cars, trucks and SUVs with diesel- and gasoline-powered engines.
  • General Motors currently holds about 17% of the US auto market, with good prospects to significantly increase it with entering the EV market in the coming years.
  • According to Dan Ives of Wedbush Securities, although EVs currently account for about 3% of autos sold globally, the number could increase to 10% by 2025, and even 20% or more by 2030 and could be worth $5 trillion by that time. With GM moving into the market it can double its market cap by the end of 2022.
  • STOCK PRICE ACTION: General Motors trades around $54.9 which leaves 17% to it's all time high of $64.3 reached on June 7, 2021.
  • WSJ analysts expect General Motors stock price to reach $75.5 while Bloomberg analysts have a target at $74.45 with 91.3% of analysts recommending a buy position.

General Motors, July 28, 2021
Current Price: 54.90

General Motors

Weekly

Trend direction

UP

Resistance 3

64.00

Resistance 2

61.50

Resistance 1

59.00

Support 1

51.00

Support 2

48.50

Support 3

46.50

Example of calculation based on weekly trend direction for 1.00 Lot*

General Motors

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

9,100.00

6,600.00

4,100.00

-3,900.00

-6,400.00

-8,400.00

Profit or loss in €**

7,697.51

5,582.81

3,468.11

-3,298.93

-5,413.64

-7,105.40

Profit or loss in £**

6,554.40

4,753.74

2,953.08

-2,809.03

-4,609.69

-6,050.22

Profit or loss in C$**

11,431.60

8,291.05

5,150.50

-4,899.26

-8,039.81

-10,552.25

* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 10:10 (GMT+1) 28/7/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more detail

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