So far, GM has carved a "cup of coffee" pattern with a "handle" being the latter what the price is drawing right now.
On one hand, one could try to take advantage of it by buying the stock in the lower trendline of the channel and selling it in the upper line (1). On the other hand, one could wait for the price to close above the channel and target the projection of it once broken (2).
If we pay attention to the Accum/Dist line, it has been on a bull trend since 2015 and still is. Despite the fact that the indicator hasn't been reliable at all time (august '15 and may '17) is still suggesting on average the stock is still being accumulated and backed by some institutional investors in the long-term.
Do as you wish but everything I said is unworthy if the operation holds a reward/risk ratio below 2 and more importantly, if price closes below 38.19, for it is a master resistence in this stock as I see it.
On one hand, one could try to take advantage of it by buying the stock in the lower trendline of the channel and selling it in the upper line (1). On the other hand, one could wait for the price to close above the channel and target the projection of it once broken (2).
If we pay attention to the Accum/Dist line, it has been on a bull trend since 2015 and still is. Despite the fact that the indicator hasn't been reliable at all time (august '15 and may '17) is still suggesting on average the stock is still being accumulated and backed by some institutional investors in the long-term.
Do as you wish but everything I said is unworthy if the operation holds a reward/risk ratio below 2 and more importantly, if price closes below 38.19, for it is a master resistence in this stock as I see it.
Comment:
Trade at your own discretion and risk.