General Motors (GM) stock rose today on news that it will lay off 10000 – 15000 employees.
Their strategy is to boost the electric car segment and hire designers and engineers who can design an electric car. Ironically, GM is cancelling production of its Chevrolet Volt as well as some sedans from Buick and Cadillac line up.
Here is the 5 year chart for GM stock track:
GM is on a strong support/resistance line at 35 dollars, and will probably go up in 2019 from the help of the government and investors. Although shutting down factories and slowing production will hit the GM at first, if they do everything right, then they can restructure production according to demand and their stock will rise.
Here is the list of cars that GM is dropping:
I am not going to trade the GM just yet, and I don’t believe it’s a good investment. If it gets above 40, then it will be in a bull trend and it’s a good time to buy.