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Fan Yang

General Motors (GM) Likely to Test the 2013 High at 41.85

Shares of General  Motors (GM) turned bullish in 2016 after a couple years of choppy bearish consolidation as we can see on the weekly chart below. 

General Motors (GM) Weekly Chart

(click to enlarge)

Bullish Breakout:
- The weekly chart shows the bullish breakout above a falling trendline.
- The RSI tagging 70 indicates that the market initiated bullish momentum. 
- We then see that price has been consolidating after the bullish breakout.
- This week price is approaching the recent consolidation high around 38.35. 

General Motors (GM) Daily Chart 3/3


(click to enlarge)

Bullish Signals:
- The daily chart reflects a bullish market.
- Price has been trading above the 200- and 100-day simple moving averages (SMAs). These moving averages are also sloping up and in bullish alignment (100-day SMA above the 200-day SMA). 
- Furthermore the daily RSI has pushed above 70 and has been holding above 40. This shows maintenance of the bullish momentum.
- Finally, price action within the current consolidation range shows bullish bias.
- Price not closing the gap and returning to range support at and below 35.00 is a sign that bulls are taking charge.

Because all signals point north at the moment, I would expect price to be able to break the 38.40 resistance pivot and open up the 41.85 high from 2013. 

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