GM trade ideas
$GM Box Setup @ Its 50 MAI like the way GM is setting up here right at its 50 MA. Earnings out of the way is a plus. On focus list for this week.
General Motors (GM) will be pushing higher in the coming weeks!By looking at the daily chart, we can see the strong bullish rally that has occurred in the last 12 months taking the price from the March 18th lows of 2020 around $14 to the $63 all-time highs in the beginning of April, 2021. This represented an astonishing 350% gain for the stock in a year. However, the road to the above-mentioned all-time highs was not easy as it was filled with many different hurdles that the bulls had to overcome in order to keep pushing the price higher. There were few massive 15-20% corrective movements that took place during this strong uptrend, but the uptrend remained intact on all occasions. The stock has continued to attract a lot of investors’ attention as it remains the leader in the auto maker space. The way that General Motors has managed to evolve from an old fashioned auto manufacturer into an innovative, disruptive and forward looking designer, manufacturer and seller of all-around automobiles and auto systems globally has turned the stock into a go-to choice for both small retail and large institutional investors looking to add some auto and EV exposure to their portfolios.
The stock is currently sitting at $57 per share, which is roughly 10% below its all-time highs of $63 per share. We saw that the stock found a lot of buying interest around the $55 level on three separate occasions in the last 2 months – once at the end of March, then again at the end of April and the most recent one on May 4th. The confluence of both the horizontal and diagonal support lines at that mark has brought a lot of buyers back to the market. Investors saw the opportunity to buy into one of the leaders in the auto and EV space at a 10% discount and at a relatively low P/E and PEG valuation and didn’t think twice about it. The recent failure of the price to break below the $55 support back in early May and the subsequent sharp price appreciation could be taken as a signal for the presence of a strong bullish interest. This in turn confirms that the long-term uptrend has resumed and that the current bullish run will most likely take the price to new all-time highs in the coming weeks.
Furthermore, we believe that the new $1.9 trillion stimulus package accepted in the US, will inject a lot of liquidity into the market, which will be a great short-term positive for the equity market. We expect most of the big tech names as well as other market favorites to restore their favorable image among traders and investors in the coming weeks, thus we anticipate that the XLY will be one of the best performing sector ETFs in May. We believe that the stock market in the US currently holds a lot of intrinsic risks - COVID-19, the newly formed office in DC, the economic recovery, the post-Brexit economic reality for the UK and EU etc. - and that we could be in for a sideways and choppy price action in the coming months. However, our analysis shows that the winners would most likely continue to win in the stock market. General Motors has definitely been one of the biggest winners in terms of stock price appreciation throughout the last 12 months, thus we are strongly bullish on GM’s stock in both the short and long term. Additionally, we are seeing GM as a great reopening play in the post COVID world. The most recent price corrections should be treated as a great opportunity to buy this strong performing stock at a remarkable discount, which would in turn give every investor a chance to maximize his profits to the upside. Moreover, some of the technical indicators that we are monitoring closely on a daily basis (50 DMA, 100 DMA, Bollinger Bands, RSI etc.) have already retraced from their overbought conditions and are signaling that the uptrend might be returning pretty soon. In addition to that, it is important to note the fact that the XLY and the Consumer Discretionary sector as a whole would continue to attract a lot of the investors’ attention moving forward, as consumers are sitting on record levels of savings and are eager to spend. This makes us optimistic for the future performance of GM as a meaningful part of the ETFs structure. Our analysis shows that as a result of the great leadership performance by the senior management of the company and the phenomenal fundamental positioning of GM through its newly updated portfolio of products, the stock will be able to hold its ground better than some of the other stocks out there in the event of a correction, and it would also significantly outperform the broader market once the uptrend resumes.
Acknowledging the fact that we are in a position to buy the stock at a 10% discount from the all-time high levels, we would like to point out that buying at these levels would be suitable for both risk-oriented and risk-averse investors. Thus, we are currently looking at the $55-57 range as a great accumulation zone for the stock. Our take profit levels in the coming months are going to be $65 and $75 respectively.
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GM Pre-earnings playEveryone knows guidance will suck due to the chip shortage. This should hit $55 support before earnings are released, got in while it was green this morning on the gap fill.
I do not plan to hold for earnings, everyone knows guidance will suck so it might just bounce because "it wasn't as bad as expected" BS.
GM ShortUptrend wedge break down + revisit.
Breakaway Gap
Crossed below SMA13, SMA50
RSI Divergence
OBV<OBV SMA34
W%R crossed -50
Short 56
Stop 64
Target 43
I am not a PRO trader. I trade option to test my trading plan with small cost.
The max Risk of each plan is less than 1% of my account.
If you like this idea, please use SIM/Demo account to try it.
Technical analysis update: GM (27h April 2021)General Motors continues its sideways price action. Its neutral trend is highly supported by low ADX value. However, the current level of importance sits between 56.97 USD and 57.05 USD per share. Move above this price level suggest bullish short term outlook and potential for price to move back above 60 USD per share.
Disclaimer: This analysis is not intended to encourage buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
General MotorsFull Explanation in Chart!
What do you think?
Agree, Disagree, Follow, Like!
Not Advice.
GM Buy Signal. Meets Criteria.GM meets all of our criteria and has generated a buy signal. The 'press the button now' signal is then on the next green daily candle close, which has occurred. Add it to your watchlist, or get long.
GM - short term bearishThis kinda sucks cus I just bought calls on Friday and I did not see the weekly chart. I have a $59 call for 4/23. I think I'm going to cut at open and grab $58 puts for 4/30.
My mistake for not zooming out.
1) Bearish divergence on RSI
2) MACD crossing down
3) Slow Stochastic crossing down (Not shown because I don't pay for extra indicators lol)
4) Bearish rising wedge
5) Decreasing volume
I really hope I'm wrong. I'm super bullish on GM. Bought the call because of the following article:
"General Motors made an unexpected electric-vehicle announcement, saying it is is building a battery plant with Korea-based LG Chem. It is a little like a Tesla Giga factory, GM style.
General Motors (ticker: GM) stock jumped, a little, in response to the news. Shares were up about 0.6% in early trading, while the S&P 500 and Dow Jones Industrial Average rose about 0.2% and 0.3%, respectively.
Capital spending and new manufacturing plants are a long-term issues, but the market might just be underweighting the importance of GM’s Friday move.
“The addition of our second all-new Ultium battery cell plant in the U.S. with our joint venture partner LG Energy Solution is another major step in our transition to an all-electric future,” said GM CEO Mary Barra in the company’s news release. LG Energy Solution is owned by LG Chem (051910.Korea).
The 2.8 million-square foot facility will go up in Tennessee and will cost about $2.3 billion, creating about 1,300 jobs."
I can't ignore the technicals. We could see 54 soon.
GM. Could pop soon. Add to watchlist.Waiting for some signs of bullishness. Ideally a break and retest.
If it gets below the 50 MA and doesn't sharply reverse take it off the list.
Indicators are looking good for us, we like them now, we want to love them tomorrow or Friday.
$GM | Inverse Head and Shoulders and Bull Flag Breakout$GM broke out of a bull flag after retesting the neckline of a bullish inverse head and shoulders pattern.
Watch for a close above 58.75 as confirmation. I
nitial Target is 59.75 to fill the gap.
Let me know what you think in the comments. Please leave a like if you agree with my analysis! 👍🏽
Another Healthy Pullback in General MotorsGeneral Motors continues to push higher as investors embrace value stocks and the cyclical recovery. Once again the chart is giving some potential signals.
First, the auto maker pulled back to hold the trendline in place since the start of the year. It’s also bouncing near its 50-day simple moving average (SMA).
Second, notice the large bullish candle on Thursday, March 25. Price came within $0.12 of the 50-day SMA but couldn’t reach that level. GM has remained above that candle since – a potential sign of buyers lurking not far below the surface.
Next, GM’s 8-day exponential moving average (EMA) has remained above the 21-day EMA. That’s a sign short-term trend is still bullish.
Finally, notice that the current bounce is occurring near the $57 area where GM topped in January and February. Is old resistance becoming new support?
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Long | GMNYSE:GM
Possible Scenario: LONG
Evidence: Price Action, Unusual option activity
This is my idea and could be wrong 100%,
Calls strike 64$, 1st April
* great opportunity,
Target price update for GMI always try to present the charts in a simple comprehensive format to prevent any confusion.
This is just my technical view, neither a fundamental comment nor a recommendation to trade..!
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$GM Breakout updateBullish flows all week pushed GM past ATH today with strong volume. For short term targets I have set the previous wave 4 as my fib lvl 0 and nearest previous high as 100. I'll be using the 1.618 as my first target. My second target is the 1.618 from the trend it broke out from. Any pullback from 60 should be bought until EMAs show otherwise.
