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Fan Yang

Anticipating Support for General Motors (GM)

Last month, I thought shares of General Motors (GM) have turned bullish again. However, recent price action reveals that it is still in consolidation mode.

General Motors (GM) Daily Chart

(click to enlarge)

- Now, even though price is sliding, the overall mode on the daily chart above is bullish.
- We can say it is neutral-bullish. But we can't say its bearish outside of the very short-term.
- In this very short-term, there is downside risk towards the 34.50 area, and possibly the 33 area, though I think we would see buying around 33.50 if the overall market is still bullish. 
- A break below 32.80 would be needed to turn the technical picture bearish.
The Support Levels:
- The first key support is around 34.50. This is a support/resistance and common support area. 
-  Below that, the 32.80-33.50 area will be key. This area involves 1) a rising support, 2) a support/resistance pivot, 3) and the 200-day simple moving average (SMA). A bullish market should probably not reach down to 33.00 but rather stay above 33.50. 
- In fact, I would like to see support around 34.50 to strengthen the bullish outlook, which should first be limited to 38, but ultimately to 40.

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