GM REPORTS A DROP IN QUARTERLY CHINA VEHICLE SALES; STOCK RISES
General Motors is currently trading at 34.66-higher by 1.52% as compared to the previous closing price. In Pre-market trading, on Thursday the stock was trading higher by 0.29%. The stock has continued gaining after the opening bell.
The U.S. automaker stated that July to September vehicle sales in China dropped 17.5%. General Motors reported a drop in quarterly sales due to a slowing economy amid the U.S.-China trade dispute and also due to increased competition in key mid-priced SUV segment.
The U.S. automaker delivered 689,531 vehicles in China for the quarter ended 30th September. The decline for the third quarter was the fifth consecutive quarterly drop for the company in China. According to market sources, GM delivered 2.26 million vehicles in the first nine months of 2019. In China, the Detroit automaker has a joint venture with SAIC Motor.
On the technical front, the RSI is currently at 37.02% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed the %D from below to the upside at around 12% and suggests that the market may head upwards
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 34.60 TAKE PROFIT AT 34.95 STOP LOSS AT 34.42