General Motors shares fall for a third session in a row on Thursday, Opel sale to PSA Group to be finalized by the end of July

The sale of General Motors European arm, Opel, to PSA Group could be finalized as early as July 31st. It was in March, when both entities already said that the deal might be completed by the end of this year.

General Motors shares closed lower for a third consecutive trading session on Thursday. The stock went down 0.67% ($0.23) to $34.11, after touching an intraday low at $33.84, or a price level not seen since June 1st ($33.05). In the week ended on June 4th the shares of the largest vehicle manufacturer in the United States added 4.17% to their market value compared to a week ago, which marked a second consecutive period of gains and also the best performance since the week ended on February 19th. However, the stock has pared its advance to 0.53% so far during the current month, following a 2.05% drop in May. The latter has been a third consecutive month of share price decline. For the entire past year, General Motors shares added 2.44%.

On June 8th the US auto maker hinted that the deal could be finalized earlier than anticipated. “We confirm that the closing is expected to take place in the second half of 2017 as planned, and that the date of 31 July constitutes a first assumption for the earliest possible date, subject to the decision of the competition authorities”, Opel said in a statement, cited by Reuters.

According to a trade union source, a swift outcome from negotiations has been made possible, as General Motors formally agreed to safeguard plant jobs by signing binding contracts during the week ended on June 4th.

Under the agreements, employees at Opel Automobile GmbH, the new entity which is to be acquired by PSA Group, were granted co-determination rights. At the same time, General Motors assured that sufficient provisions had been put aside for the purpose of pension liability funding.

According to CNN Money, the 22 analysts, offering 12-month forecasts regarding General Motors stock price, have a median target of $39.50, with a high estimate of $52.00 and a low estimate of $31.00. The median estimate is a 15.80% surge compared to the closing price of $34.11 on June 8th.

The same media also reported that 13 out of 24 surveyed investment analysts had rated General Motors’ stock as “Hold”, while 9 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the General Motors stock are presented as follows:

R1 – $34.14
R2 – $34.18
R3 (Range Resistance – Sell) – $34.21
R4 (Long Breakout) – $34.32
R5 (Breakout Target 1) – $34.44
R6 (Breakout Target 2) – $34.49

S1 – $34.08
S2 – $34.04
S3 (Range Support – Buy) – $34.01
S4 (Short Breakout) – $33.90
S5 (Breakout Target 1) – $33.78
S6 (Breakout Target 2) – $33.73

By using the traditional method of calculation, the weekly levels of importance for General Motors Company (GM) are presented as follows:

Central Pivot Point – $34.12
R1 – $35.20
R2 – $35.95
R3 – $37.03
R4 – $38.11

S1 – $33.37
S2 – $32.29
S3 – $31.54
S4 – $30.79