Has GM ran out of steam a little bit at a critical point?
Both the Fibonacci retracement (from the Feb - March crash) and the Fibonacci expansion run in June have a confirmed level almost on top of each other at $27.65 & $27.66, GM was able to break through but then got rejected at an expected $29 level as this is makes up a resistance triangle from February to June high and also a Fib level ($28.95) from the June expansion. The GM chart came to my attention as GM got flagged yesterday in a scan on unusual high volume call activity for "3156(contracts) GM August 21 $28.50 Calls for .50". It's not a huge amount of money but someone does have a fair amount of confidence that the existing Fib resistance level will be broken again and the price will run up again very soon. Looking at where we are if it does keep above the current Fib level and then break through the triangle resistance then we may have a nice little break out on our hands. My indicators show this is still bullish albeit we are in a pullback so for me I'll be watching closely over the next week odd.
I'm not a registered investment advisor so as always please do your own research before putting your money at risk.
Both the Fibonacci retracement (from the Feb - March crash) and the Fibonacci expansion run in June have a confirmed level almost on top of each other at $27.65 & $27.66, GM was able to break through but then got rejected at an expected $29 level as this is makes up a resistance triangle from February to June high and also a Fib level ($28.95) from the June expansion. The GM chart came to my attention as GM got flagged yesterday in a scan on unusual high volume call activity for "3156(contracts) GM August 21 $28.50 Calls for .50". It's not a huge amount of money but someone does have a fair amount of confidence that the existing Fib resistance level will be broken again and the price will run up again very soon. Looking at where we are if it does keep above the current Fib level and then break through the triangle resistance then we may have a nice little break out on our hands. My indicators show this is still bullish albeit we are in a pullback so for me I'll be watching closely over the next week odd.
I'm not a registered investment advisor so as always please do your own research before putting your money at risk.