Stock of the day: General Motors Company
10 May 2023
In today’s Stock of the Day section, I would like to present an analysis of General Motors Company. The price here is just one small step from a major buy signal and I am very curious to see which direction it takes soon.
The beginning of May was pretty bad for the GM, as the price managed to set new yearly lows. This weakness was the outcome of the price breaking two key dynamic supports (black) that were connecting crucial lows last year. The reason we gathered here is that this breakout may actually be a fake one (yellow), which may lead to a major signal to buy.
All we need to trigger the false breakout scenario is the price coming back above the black resistances and breaking the red mid-term down trendline which has been protecting sellers since the beginning of April. As long as we stay below, the sell signal is ON, but once the buyers manage to climb above, we will get a proper signal to buy. In my opinion, this scenario is very probable.