General Motors has been following an ascending wedge for months now. Currently approaching the ascending support line, news of strikes from UAW members may be the catalyst that causes this asset to fail at the support line. Here we have pointed out minor and major support lines, and a theoretical path for price to follow. After a large gap down, momentum seems to be heading downward, if price sticks to the support, and ends up fulfilling the wedge, expect that window to be closed. (gap window) Long story short, if support holds, we expect price to return to its original path within the wedge. If that is not the case we expect to see a fall to the following support lines.
Comment:
As we can see price is following the drawn path. Look for a return to that major support line. One possibility is to return to the wedge except it will act as resistance. Still bearish on this position and keeping shorts open.