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According to a statement by Chinas State Administration for Market Regulation over the weekend, over 3.3 million vehicles are to be recalled from October 20th by GM Shanghai, General Motors Companys (GM) joint venture in the Asian country. The reason behind the recall is a defect with the vehicles suspension system.

General Motors shares closed flat at $33.67 during the trading session in New York on Friday. The stock registered an intraday high at $33.69 and an intraday low at $33.29.

Shares of General Motors Company have retreated 17.86% so far in 2018 compared with an 8.99% gain for the underlying index, S&P 500 (SPX).

In 2017, General Motors’ stock surged 17.65%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

In a text message, GM Shanghai said that under extreme operating conditions the vehicles suspension arm could be deformed.

GM Shanghai also said that there were no known casualties associated with the issue.

The State Administration for Market Regulation pointed out that the recall would affect Buick, Cadillac and Chevrolet models manufactured between 2013 and 2018.

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding General Motors Companys stock price, have a median target of $45.50, with a high estimate of $60.00 and a low estimate of $33.00. The median estimate represents a 35.14% upside compared to the closing price of $33.67 on September 28th.

The same media also reported that 11 out of 22 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while 9 – as “Hold”. 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 – $33.71
R2 – $33.74
R3 (Range Resistance – Sell) – $33.78
R4 (Long Breakout) – $33.89
R5 (Breakout Target 1) – $34.02
R6 (Breakout Target 2) – $34.07

S1 – $33.63
S2 – $33.60
S3 (Range Support – Buy) – $33.56
S4 (Short Breakout) – $33.45
S5 (Breakout Target 1) – $33.32
S6 (Breakout Target 2) – $33.27

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

Central Pivot Point – $34.11
R1 – $34.94
R2 – $36.21
R3 – $37.04
R4 – $37.87

S1 – $32.84
S2 – $32.01
S3 – $30.74
S4 – $29.47

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