On March 24, 2017 the General Motors Company (<a href=http://www.marketwatch.com/investing/stock/gm >GM</a>), crossed above its 150 day moving average. Historically this has occurred 20 times since 2010. When this happens, the stock gains a minimum of 0.475%, has a median gain of 5.466% and maximum gain of 16.159% over the next 24 trading days. On March 23, 2017, the stock broke below the 150 moving average and broke above the moving average on the following day. This has occurred three times since August 2016 and the stock gained 6.686%, 5.674% and 16.159%.
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" alt="Current USO chart from TradingView" width="1886" height="1137" /> Current General Motors chart from TradingView
When we take a look at other technical indicators, the relative strength index (RSI) is at 32.6033. RSI tends to determine overbought and oversold levels. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock just flirted with the oversold mark and may begin to move upward.
The true strength index (TSI) is currently -5.3793. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is trending downward which could be skewed due to the market drop on March 21. Even though it is pointing downward four of the last five times it was near this level, the stock reversed upward.
The negative vortex indicator (VI) is currently 1.3790. The VI determines current trend and direction. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is trending downward, but it is near the reverse point where the stock normally goes up big.
Considering the moving average crossover, RSI, TSI, and VI levels, the overall near-term stock direction appears to be trending upward. Based on historical movement compared to current levels, the stock could gain at least another 7.86% over the next four weeks.
DISCLOSURE: I currently do not have positions in the stock mentioned above. I most likely will not enter a position within the next 72 hours. Historical movements and technical indicators should never be the sole basis for entering positions involving risk. Make sure appropriate research is conducted prior to taking any risk in a marketplace.
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When we take a look at other technical indicators, the relative strength index (RSI) is at 32.6033. RSI tends to determine overbought and oversold levels. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock just flirted with the oversold mark and may begin to move upward.
The true strength index (TSI) is currently -5.3793. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is trending downward which could be skewed due to the market drop on March 21. Even though it is pointing downward four of the last five times it was near this level, the stock reversed upward.
The negative vortex indicator (VI) is currently 1.3790. The VI determines current trend and direction. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is trending downward, but it is near the reverse point where the stock normally goes up big.
Considering the moving average crossover, RSI, TSI, and VI levels, the overall near-term stock direction appears to be trending upward. Based on historical movement compared to current levels, the stock could gain at least another 7.86% over the next four weeks.
DISCLOSURE: I currently do not have positions in the stock mentioned above. I most likely will not enter a position within the next 72 hours. Historical movements and technical indicators should never be the sole basis for entering positions involving risk. Make sure appropriate research is conducted prior to taking any risk in a marketplace.
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!
