General Motors Co. (NYSE: GM) engages in the designing, manufacturing, and selling of cars, trucks and automobile parts. It also provides automotive financing services through General Motors Financial Company, Inc. The firm operates through the following segments: GM North America, GM International, Cruise and GM Financial. The company sells vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Wuling, Maven, and OnStar brands…
Take a look at the 1-year chart of General Motors below with my added notations…
GM had formed a key level of resistance at $57 (green) over the past couple of months, but the stock broke through that resistance on Friday. That break should lead to higher prices, overall, for the stock. If GM comes back down to that $57 level, as it did yesterday, a support bounce might be expected.
A long trade could be entered on a pull back down to that level. However, a break back below $57 could negate the forecast for a higher move and could also be an opportunity to get short the stock.
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Christian Tharp, CMT