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General Motors Co - (GM) - April 4, 2024

SIA Charts’ Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing.

Automaker General Motors (GM) was a perpetual underperformer for nearly two years, spending nearly all of 2022 and 2023 stuck in the red unfavored zone of the SIA S&P 100 Index Report. As recently as November, GM was near rock bottom in the relative strength rankings.

Since December, however, GM has been steadily working its way upward in the relative strength table. It exited the red zone in February and has continued to work its way upward within the Yellow Neutral Zone and is currently only four spots away from a return to the green zone for the first time since January of 2022. Yesterday, GM moved up 3 spots to 30th place, up 13 positions in the last month.

Year to date, GM is up 26.1%, compared with a gain of 10.1% for the S&P 100 Index so far this year. General Motors (GM) shares spent most of 2022 and 2023 stuck in a trading range between $30.00 and $42.50 building a base for recovery from an early 2022 selloff. Late last year, the shares had a final shakeout down to $26.00 and since then they have been under renewed accumulation.

Twice so far, the shares have staged breakaway gaps upward on volume spikes and more recently have broken out of their base on a big jump in volume, all combining to indicate renewed accumulation. Next potential upside resistance appears near the $50.00 round number, then $55.00 based on a measured move from the base. Initial support moves up to the $42.50 breakout point from $42.00.

Back in November, a long-term downtrend in General Motors (GM) shares bottomed out in a Bear Trap where they broke down by one row, then reversed back upward. Since then, the shares have been under renewed accumulation, consistently climbing from near $26.50 toward $45.00 without even a 3-box correction along the way. Building on an initial bullish Double Top breakout, the shares have completed larger Spread Double Top breakouts and snapped out of their previous downtrend.

Currently GM is bumping up against resistance at previous highs near $45.75. A close above there would confirm accumulation continues with next potential resistance at previous lows near $49.50 or $53.60, or the $50.00 round number, of $51.55 based on a horizontal count. Initial support appears near $41.45 based on a 3-box reversal.

With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, GM is exhibiting short-term strength across the asset classes.

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