Stock of the day: General Motors
04 April 2023
S&P 500 has been climbing higher for the past four days, the sentiment is very positive and trading platforms are filled with promising bullish occasions. In this analysis, we will show you an instrument that is currently struggling, which is a sign of a proper weakness and may result in a long-term signal to sell.
In today’s piece, I would like to talk about General Motors as the price is really failing to move higher here, showing lack of demand. On a weekly chart, we are currently inside of a flag pattern. A flag is a correction created in a down-trend and it promotes further slide to the south. The price is trading below the crucial horizontal resistance of 42 USD (green) and as long as we remain below, the negative sentiment is ON.
A legitimate signal to sell will be triggered when the price breaks the lower line of the flag. Chances of that are quite significant and this is my outlook for the GM for the next few weeks.