Investing analysis platform Invezz released a technical analysis report on Monday, noting that General Motors' stock price is forming several technical risk patterns ahead of its imminent second-quarter earnings release, potentially signaling increased short-term volatility.

The report stated that the share price of General Motors has constructed a "bearish flag" continuation pattern over the past several weeks. This pattern typically emerges after a sharp decline, and a downward breakout could trigger further losses. Concurrently, the Relative Strength Index (RSI) is showing signs of a bearish divergence—while the stock price has remained within a certain range, its upward momentum has noticeably weakened, hinting that buying power is waning.

Regarding trading volume, the stock's volume has persistently contracted during recent rebounds, while volume has expanded on down days, presenting a classic weak market structure. Analysts point out that this divergence between price and volume typically reflects a lack of sustained bullish conviction among market participants at current price levels.

General Motors is scheduled to announce its second-quarter financial results on July 24. Market expectations are for the company to report revenue of approximately $48 billion and adjusted earnings per share of around $2.85. Investors will closely monitor the impact of its North American market profit margins, electric vehicle business sales data, and the competitive landscape in China on its performance.

Analysts believe the direction of the stock's post-earnings volatility will largely depend on the management's wording regarding its guidance for the second half of the year. If the company maintains an optimistic outlook for its full-year profit prospects, the stock price could potentially break through current technical resistance levels. Conversely, if it lowers expectations or expresses caution about the industry outlook, the aforementioned bearish technical patterns could be triggered.