General Motors Company : Wait for a signal
By Alexandre Nutte
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$22.37 | $24.2 | $19.1 | +8.18% |
Besides, as shown by the “enterprise value/revenue” ratio, General Motors is trading at a very low level in comparison with historical benchmark. The enterprise value is estimated at 0.05 time its revenue and the PER is currently at 6.14x.
Graphically, for several trading sessions, the stock is crumbling and it is affecting by the pressure from the 20-days moving average. In weekly data, the short-term trend is bearish and the share should be back on the USD 20.15 long-term support successfully tested several times in the past.
In this context, investors could take a buying position on the USD 20.15 weekly support to target USD 24.2 resistance. A stop loss will be fixed at USD 19 in order to cover the position.