GM on the Road to Recovery Thanks to China Auto Sales, Barra Town Hall Meeting
NEW YORK (TheStreet) -- Is General Motors
Earlier Thursday it reported better-than-expected sales of its Buick and Chevrolet brands in China and, separately, CEO Mary Barra held a Town Hall meeting for employees that covered the ignition switch recall scandal.
GM stock opened higher and currently trades around $36. But with the stock down over 11% for the year to date, can these gains be sustained?
Traders and investors have been driving GM stock higher since setting its 2014 intraday low at $31.70 on April 11 in anticipation of better auto sales and the company's plans to avoid future issues when recalls are needed.
Let's start with the daily chart for General Motors stock.
Courtesy of MetaStock Xenith
The daily chart shows that General Motors had a significant rally since July 2012 than set an all-time intraday high (for the newly-traded GM) at $41.85 on Dec. 17. The stock began 2014 in a down trend and traded back and forth around its 200-day simple moving average between Feb. 3 and March 11. The stock then traded well below its 200-day SMA, now at $36.39, trading as low as $31.70 on April 11.