From Taki Tsaklanos: It is a fact: General Motors has broke out. The stock price of General Motors (GM) tested its breakout point and jumped more than 4 pct higher on Wednesday. The breakout seems to be confirmed with that.
The automotive sector was one of our favorite stock market sectors, and we recommended watching it very closely several weeks back (read The Best 5 Stock Market Sectors As 2017 Kicks Off) but also last week (read 4 Stock Market Sectors Which Could Outperform In The First Months Of 2017).
With Wednesday’s strong price action, we see GM moving higher in the first weeks and months of 2017.
How high can GM’s stock price go? Given the very long consolidation period of 2.5 years, there is much bullish energy in this stock. We see an easy move of 20 pct higher. We will not make any specific price forecast or prediction though, apart from saying that there is quit some upside potential.
General Motors Company (NYSE:GM) fell $0.13 (-0.35%) in premarket trading Thursday. Over the past year, GM has gained 13.17%, versus a 12.29% rise in the benchmark S&P 500 index during the same period.
ETF Investors looking for diversified exposure to the auto industry can consider the First Trust NASDAQ Global Auto Index Fund (NASDAQ:CARZ), which was unchanged in premarket trading Thursday. Over the past twelve months, CARZ has gained 0.41%, versus a 12.29% rise in the benchmark S&P 500 index during the same period.
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