General Motors shares gain for a third session in a row on Monday, US new vehicle sales projection for 2017 revised down

According to a June 26th statement by Chuck Stevens, General Motors Chief Financial Officer, the auto maker now projects that sales of new vehicles in the United States will be in the “low 17 million” unit range this year.

General Motors shares closed higher for a third consecutive trading session on Monday. It has also been the steepest daily gain since June 12th. The stock went up 0.94% ($0.32) to $34.52, after touching an intraday high at $34.65, or a price level not seen since June 15th ($34.67). In the week ended on June 25th the shares of the largest vehicle manufacturer in the United States lost 0.26% of their market value compared to a week ago, which marked a third consecutive period of decline. However, the stock has extended its advance to 1.74% so far during the current month, following a 2.05% slump 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%.

The auto makers previous forecast had pointed to new vehicle sales within the “mid-17 million” unit range in 2017.

“The market is definitely slowing … it’s something we are going to monitor month to month”, CFO Stevens noted during a conference call, cited by Reuters. “Pricing is more challenging.”

Stevens also said that vehicle sales might be 200 000 to 300 000 units lower in 2017. However, in his opinion, GM had “somewhat insulated” itself from a downturn by trimming fleet sales.

At the same time, he once again confirmed GMs objective to cut its vehicle inventories in the United States to 70 days of supply by the end of this year from 110 days in June.

New vehicle sales in the United States reached an all-time high of 17.55 million units last year, following a boom which started in 2010. However, the largest auto producers in the country have reported a shrink in sales during the latest three months.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding General Motors stock price, have a median target of $39.35, with a high estimate of $52.00 and a low estimate of $31.00. The median estimate is a 13.99% surge compared to the closing price of $34.52 on June 26th.

The same media also reported that 14 out of 25 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 – $34.56
R2 – $34.61
R3 (Range Resistance – Sell) – $34.65
R4 (Long Breakout) – $34.78
R5 (Breakout Target 1) – $34.93
R6 (Breakout Target 2) – $34.99

S1 – $34.48
S2 – $34.43
S3 (Range Support – Buy) – $34.39
S4 (Short Breakout) – $34.26
S5 (Breakout Target 1) – $34.11
S6 (Breakout Target 2) – $34.05

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

Central Pivot Point – $34.21
R1 – $34.56
R2 – $34.92
R3 – $35.27
R4 – $35.62

S1 – $33.85
S2 – $33.50
S3 – $33.14
S4 – $32.78