General Motors shares gain the most in a week on Friday, 368 000 medium- and heavy-duty trucks recalled over risk of fire

According to a statement by General Motors Company on Friday, 368 000 medium- and heavy-duty diesel trucks with engine-block heaters are to be recalled due to risk of fire. A spokesperson for the company said that so far there had been no reports of injuries, accidents or deaths related to the recall.

General Motors shares closed higher for the fourth time in the past ten trading sessions in New York on Friday. It has also been the sharpest daily surge since April 26th. The stock went up 1.44% ($0.55) to $38.80, after touching an intraday high at $38.90, or a price level not seen since May 1st ($39.19).

Shares of General Motors Company have risen 15.99% so far in 2019 compared with a 17.50% gain for the benchmark index, S&P 500 (SPX).

In 2018, General Motors’ stock went down 18.39%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

Vehicles being recalled include Chevrolet Silverado and GMC Sierra 2500 and 3500 trucks, manufactured between 2017 and 2019, and some Chevrolet Silverado 4500, 5500 and 6500 trucks, manufactured in 2019, all equipped with a 6.6-liter Duramax V8 engine as well as an optional engine-block heater.

According to General Motors, the vehicles’ engine block heater cord or the terminals could short circuit and fail.

Last month GM informed dealers that a resolution to the issue was still being developed, while the auto maker was working with the supplier ”to obtain the required parts as quickly as possible.”

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding General Motors Company’s stock price, have a median target of $47.50, with a high estimate of $67.00 and a low estimate of $33.00. The median estimate represents a 22.42% upside compared to the closing price of $38.80 on May 3rd.

The same media also reported that 13 out of 21 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while 5 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

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

Central Pivot Point – $39.09
R1 – $39.98
R2 – $41.15
R3 – $42.04
R4 – $42.92

S1 – $37.92
S2 – $37.03
S3 – $35.86
S4 – $34.68