Skip to main content

General Motors Earnings Preview: Here Are the Must-Know Levels

General Motors will report earnings later this week. Here are the must-know levels now for the stock.

We’ve already heard from a number of S&P 500 companies as well as several automakers, but we haven’t received the earnings report from General Motors  (GM) - Get Free Report yet.

The company is scheduled to report earnings before the open of trading on Wednesday.

Ford  (F) - Get Free Report delivered its quarterly results last week, sailing past expectations and providing better-than-expected guidance.

While shares popped higher on the day it reported, Ford has struggled to gain upside momentum as the stock has pulled back over the last few days.

It took a few days for Tesla  (TSLA) - Get Free Report to find its groove after reporting its better-than-expected results, but the stock is now trading much better on the long side

Perhaps it’s the company’s exposure to Bitcoin helping to give it a lift.

In any regard, many investors are anxiously awaiting what GM has to say and are wondering what it will mean for the stock price. Let’s look at the chart.

Ford is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells F? Learn more now.

Trading General Motors Stock

Weekly chart of GM stock.

Weekly chart of GM stock.

In January, General Motors stock exploded higher, clearing the prior high near $46.75 and rallying past $50.

The $50 level turned into support, as shares settled into a nice uptrend. Bulls were buying the dips and bears were selling the rips. It was a harmonious win-win trading setup where both sides could claim some victories.

More recently though, the stock broke down below channel resistance, as well as the 10-week and 21-week moving averages while the $55 area wavered as support.

For now, bulls are bidding GM stock back up. However, channel support looks to be shifting into potential resistance, while the stock is struggling with the 10-week and 21-week moving averages.

It’s not promising price action, but it’s not the end of the world - yet.

Earnings will likely be the deciding factor. A poor post-earnings reaction leaves General Motors susceptible to a breakdown.

In that event, the July low is in play near $52.50. Below that and the $50 area and 50-week moving average may be a reasonable buy-the-dip area. That would also give buyers a nice “ABC” correction down to a key area.

On a bullish post-earnings reaction, let’s see if GM can clear this week’s high and reclaim $60. If it can, the "channel trade" may be back on the table, putting the $65 to $67 area in play along with the 161.8% extension.