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Fan Yang

General Motors (GM) - Key Support Just a Little Lower

Shares of General Motors (GM) have been sliding from the 2017 high at 38.55 to a low on the year so far at 33.80. I think the overall trend is neutral-bullish, and I think price should be supported around 32.50.

General Motors (GM) Weekly Chart

(click to enlarge)

Support Factors:
- We can see that price is already testing the 100-week simple moving average (SMA) as well as a previously broken falling resistance.
- The support does begin around 34, and we have seen some buying here already.
- However, I think if price continues to be pressured, there is a chance GM will fall further towards 33, or even 32.50. 
- We can see that the 32.50-33 area involves:
1) A rising support.
2) The 200-week SMA.
3) A key support/resistance pivot.
- Furthermore, the RSI is 40. Even if the RSI cracks 40, as long as it can turn back up immediately (within a week), it would reflect maintenance of the bullish momentum.

Below 32.50:
- A break below 32.50 on the other hand takes away the bullish component of the bullish-neutral mode.
- Instead the mode would be neutral, with some short-term bearish bias at least towards 30.
- If price does reach 30 but bounces up, I would still consider the bullish scenario alive for GM.
- Below 30, I think GM would be bearish.

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