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Fan Yang

General Motors (GM) - 35.00 is Critical Resistance

Shares of General Motors (GM) rallied after the US election. But this rally is going to be challenged as price approaches 35.

GM Weekly Chart 

(click to enlarge)

In Consolidation:
- The weekly chart shows a market that has been in consolidation since 2014, after price failed to tag 42 and retreated.
- Within this consolidation, price was consolidating since 2016 around 30. 
- The recent rally actually made a new high on the year for GM. 
- But as we can see in the weekly chart, even though price has sprung up from its 2016 consolidation, it is still within the context of the consolidation since 2014.

Resistance at 35.00:
- As price approaches 35, it will be challenged by the falling resistance trendline seen in the weekly chart.
- A break above 35.00 will therefore signal bullish continuation, and reopen the 42 area.
- To the downside, a break below 30 might be meaningful, if it also breaks below the rising support. 
- A break below 30 would at least open up the 2015-low near 25.00.

I would anticipate the bullish scenario here, and look support in the 30-32 area to confirm.

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