General Motors Company (GM)
General Motors Company (GM) is an American multinational corporation headquartered in Detroit, Michigan that designs, manufactures, markets, and distributes vehicles and vehicle parts, and sells financial services, with global headquarters in Detroit's Renaissance Center.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 108.99% per annum.
- GM price at the close of July 25, 2024 was $44.13 and was lower than the bottom border of the primary price channel by $2.28 (4.91%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 35.48% per annum.
- GM price at the close of July 25, 2024 was lower than the bottom border of the secondary price channel by $1.17 (2.58%). This indicates a possible reversal in the secondary trend direction.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of GM price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: October 3, 2023
End date: July 22, 2024
a = 0.2610
b = 0.0020
s = 0.0556
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0020) – 1
= 108.99%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0556) – 1
= 24.92%
October 3, 2023 calculations
Top border of price channel:
Exp(Y1,054)
= Exp(a + b × X1,054 + 2 × s)
= Exp(a + b × 1,530 + 2 × s)
= Exp(0.2610 + 0.0020 × 1,530 + 2 × 0.0556)
= Exp(3.4622)
= $31.89
Bottom border of price channel:
Exp(Y1,054)
= Exp(a + b × X1,054 – 2 × s)
= Exp(a + b × 1,530 – 2 × s)
= Exp(0.2610 + 0.0020 × 1,530 – 2 × 0.0556)
= Exp(3.2397)
= $25.53
July 22, 2024 calculations
Top border of price channel:
Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(0.2610 + 0.0020 × 1,823 + 2 × 0.0556)
= Exp(4.0539)
= $57.62
Bottom border of price channel:
Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(0.2610 + 0.0020 × 1,823 – 2 × 0.0556)
= Exp(3.8314)
= $46.13
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 108.99% per annum.
- GM price at the close of July 25, 2024 was $44.13 and was lower than the bottom border of the primary price channel by $2.28 (4.91%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: March 20, 2024
End date: July 25, 2024
a = 2.3498
b = 0.0008
s = 0.0279
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0008) – 1
= 35.48%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0279) – 1
= 11.80%
March 20, 2024 calculations
Top border of price channel:
Exp(Y1,170)
= Exp(a + b × X1,170 + 2 × s)
= Exp(a + b × 1,699 + 2 × s)
= Exp(2.3498 + 0.0008 × 1,699 + 2 × 0.0279)
= Exp(3.8191)
= $45.56
Bottom border of price channel:
Exp(Y1,170)
= Exp(a + b × X1,170 – 2 × s)
= Exp(a + b × 1,699 – 2 × s)
= Exp(2.3498 + 0.0008 × 1,699 – 2 × 0.0279)
= Exp(3.7076)
= $40.76
July 25, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(2.3498 + 0.0008 × 1,826 + 2 × 0.0279)
= Exp(3.9248)
= $50.64
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.3498 + 0.0008 × 1,826 – 2 × 0.0279)
= Exp(3.8133)
= $45.30
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 35.48% per annum.
- GM price at the close of July 25, 2024 was lower than the bottom border of the secondary price channel by $1.17 (2.58%). This indicates a possible reversal in the secondary trend direction.