GM's recent rally since the end of August could be a significant one. Let's start with the 4H chart, where we see a rising channel. GM 4H Chart 11/22(click to enlarge) 1) Price is in a rising channel.2) Price is clearing 36.00 and breaking above a week-long consolidation. 3) Price has crossed above the 200-, 100-, and 50-period simple moving averages (SMAs) in the 4H chart. This shows that bulls are taking over. 4) The RSI has pushed above 70, even 80, and is holding above 40 for the most part, reflecting development of bullish momentum. Let's zoom out a bit to price action since 2013: GM Daily Chart 11/22(click to enlarge) The daily chart shows a rally in 2013, which evolved into a consolidation in 2014. Price is still within this consolidation and the current bullish market in the medium-term is going to be challenged by a long-term resistance. While the falling trendline offers one resistance factor, I believe the more important one is the 38-39 highs from July 2014 and March 2015. We should expect resistance here between 38 and 39, with a downside risk to 32.00. If the market can hold above 32.00, we should have a strong signal GM has is turning bullish after almost 2 years of consolidation. So, in the short-term expect some bullish push towards the 38-39 area, but be ready for a bearish pullback towards 32. If price can hold above 32, we can gain more confidence of a bullish push towards 40 and 42.