General Motors $HM recently broke above a key resistance at $40.50, opening up the next cluster of resistance in the $45-$45.20 area. GM Daily Chart(click to enlarge)Bullish Breakout:- The $40.50 area has been common resistance since July 2018.- But in July this year, price cracked this resistance. - However, as we can see on the daily chart, price only rallied to $41 before finding resistance. - It is now just hovering above that $40.50 resistance. So far, the bullish breakout has been weak.- The market might be tentative with this bullish breakout in anticipation of the Aug. 1 earnings report.- I think the market is ready to extend the bullish breakout as long as nothing that worrisome appears in the report.- Even if earnings don't meat expectations, as long as guidance doesn't fall by the wayside, I would expect a bullish extension.- However, a break below $40 would be a sign of a failed bullish breakout - this would translate into a bearish signal.- Otherwise, with price holding above $40, GM would have upside towards the $45-$45.20 area, the next common resistance.