General Motors (GM) stock is overbought and may be up for correction
General Motors Company (NYSE:GM) last traded at $43.17 with a gain of $0.07 (+0.16%). GM has been on the uptick lately that has made our list of overbought stocks as well, with a 14-day RSI of 76.25.
The “relative strength index” (RSI) is a tool that measures the speed and magnitude of recent price moves in the market and alerts investors of potential overbought or oversold conditions. If a stock’s 14-day RSI goes above 70, it is considered overbought, indicating that it may be overextended after a strong run and investors may want to reduce their exposure. Conversely, if a stock’s 14-day RSI is below 30, it is considered oversold, suggesting that it may be time for investors to consider adding exposure to the name. A low RSI can indicate overly-negative sentiment about a stock and potentially signal a buying opportunity.
While it’s important to note that overbought stocks can continue to rise further, theoretically until their RSI hits 100, and oversold stocks can still fall further, theoretically to zero, analyzing RSIs can be useful for investors seeking to lighten up on existing positions or establish new ones.
Other companies in General Motors’s space includes: XPeng (NYSE:XPEV), Fisker (NYSE:FSR), Ford Motor (NYSE:F), NWTN (NASDAQ:NWTN) and Polestar Automotive (NASDAQ:PSNYW).
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