GM is trending up steadily and volume patterns indicate that buyers are far stronger than sellers. The sellers dried up at the $25 level and the buyers stepped up and got aggressive at the $25.50 level and gapped up GM to $26+. Buy any corrections and look for a 10% choppy rally over the month of April.
Note how the volume dried on each successive price decline. This is a bullish setup, especially now that the price has advanced to the high end of where the sellers started selling. The triangle breakout is a positive, but it could slip back in the next few sessions and test the gap. I want to be a buyer of GM on pull-backs to $26 and $25.50. Risk down $24.80. Time frame for this trade is 1 month, as outlined.
By: Technical Tim, April 2, 2012 12:18PM EST
Note how the volume dried on each successive price decline. This is a bullish setup, especially now that the price has advanced to the high end of where the sellers started selling. The triangle breakout is a positive, but it could slip back in the next few sessions and test the gap. I want to be a buyer of GM on pull-backs to $26 and $25.50. Risk down $24.80. Time frame for this trade is 1 month, as outlined.
By: Technical Tim, April 2, 2012 12:18PM EST
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