General Motors (GM) has returned to the Green Favored Zone of the SIA S&P 100 Index Report after moving up 15 spots yesterday to 19th place. GM has climbed 40 spots in the last month.
A major breakout is underway in General Motors (GM) shares. Blasting through $32.00 yesterday completed a bullish Ascending Triangle base and confirmed the start of a new uptrend that had previously been signaled by last month’s snapping of a downtrend line and a growing trend of higher lows which has been emerging since April.
Next potential upside resistance on trend appears at previous highs near $38.00, then the $40.00 to $41.00 area where a round number and a measured move converge. Initial support appears in the $29.00 to $30.00 area. Note the potential for additional support near the 50 and 200-day moving averages, which are approaching a potential Golden Cross.
Recent gains in General Motors (GM) shares keep adding to a series of technically bullish developments over the last few months, including the completion of a Quadruple Top base in May and the snapping of a downtrend line in August. Clearing $30.75, the shares completed a bullish Spread Double Top pattern, signaling the start of a new upleg which remains active.
Next potential upside resistance appears in a zone between $39.75 and $42.25 where a vertical count, horizontal count, the $40.00 round number, and previous highs cluster. Initial support appears near between $29.55 based on a 3-box reversal, and the $30.00 round number.
With a bullish SMAX score of 9, GM is exhibiting near-term strength against the asset classes.
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