We have recently highlighted the technical strength in Ford (F) , but today I want to check out General Motors (GM) .
In the daily bar chart of GM, below, we can see that prices have been in a sideways trading range market or consolidation pattern all year. GM has found buying interest around $50 or so and selling resistance on approach towards $65 or so. GM has traded around the 50-day moving average line and tested the rising 200-day line in August and September. Now prices are trading above both of these indicators.
The On-Balance-Volume (OBV) line looks like it has made a small double bottom in September and late October. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and poised for a new buy signal.
In th3 weekly Japanese candlestick chart of GM, below, we can see an improving picture. Prices are trading above the 40-week moving average line.
The weekly OBV line shows improvement from an August low. The MACD oscillator just crossed above the zero line for a new buy signal.
In this daily Point and Figure chart of GM, below, we can see a potential upside price target in the $72 area.
In this weekly Point and Figure chart of GM, below, we can see a price target of $83.
Bottom-line strategy: Traders could go long GM risking to $52. The $72 area and then the $83 area are our price targets.
MA is set up to break above its early January highs.
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