SIACharts Logo

Commentary >


SIA Charts’ relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis.

In the April 24th edition of the Daily Stock Report, we identified General Motors as a stock which has been steadily moving up the ranks in the SIA S&P 100 Index report, climbing up from near rock bottom at the end of last year, up out of the red zone, through the yellow zone and back up into the Green Favored Zone for the first time since early 2022.

Between then and now, the shares dipped slightly back into the yellow zone but they have started to climb once again, moving up 6 spots in the last week to 24th place. In the last week, GM has gained 4.27% versus a 1.86% gain for the S&P 100 Index.

Candlestick Chart Breaks Out Again. A major breakout is underway in General Motors (GM) shares this week. After selling off in the first half of 2022, GM spent nearly 18 months base-building in the $30.00 to $42.50 range. Late last year, the shares broke down briefly in a final shakeout, and then came under renewed accumulation at the start of this year.

For the last several months, the shares have been under renewed accumulation, establishing a new uptrend of higher lows and holding above the 10-week moving average, its launch pad for this weeks move. In late March, the shares broke out over $42.50 and then paused to digest their gains. This week’s breakout over $46.00, a key support/resistance level, signals that a new upleg has started.

Measured moves suggest the potential for resistance near $55.00, then $62.00, which coincides with a retest of the 2002 peak. Initial support appears at the 10-week average near $44.85.

Point and Figure Chart Catapults Upward. General Motors (GM) has been under renewed accumulation since November of 2023. For over six months, the shares have been steadily climbing, completing multiple bullish patterns and snapping a downtrend line. A recent correction was contained at a 3-box reversal and since then, the shares have launched upward again, rallying to their highest level in over two years, completing a bullish Double Top and a Bullish Catapult.

Based on vertical counts, upside resistance may emerge near $51.40 or $54.55, followed by $61.45 which is based on a horizontal count. Initial support appears near $43.85 based on a 3-box reversal.

With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 9 out of 10, GSY.TO is exhibiting short-term strength across the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.