Send me real-time posts from this site at my email
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. 

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue