GM General Motors pulling back to massive support
Using the KEY LEVELS method, GM is a low-risk buy against the support created by the last earnings report.
I like to trade against these KEY LEVELS and enter AFTER earnings have been released and the stock revisits the KEY LEVEL. If you rally INTO the Key level then it is RESISTANCE. If it falls down TO the Key level then it is support.
Risk is 1 average range on the other side of the key level.
Upside is to the high of the rally prior to the retest of the Key level.
Target 32-32.50.
32.50 is also a level of LOW VOLUME which is "massive resistance".
Why didn't it trade any volume at 32.50? Because there was a huge seller there and it drove it down under that price. The first time back to it you will see a meaningful reaction.
Cheers.
Tim
11:32AM Friday April 8, 2016
GM 29.48 last, 28.50 stop, 32.50 target.
I like to trade against these KEY LEVELS and enter AFTER earnings have been released and the stock revisits the KEY LEVEL. If you rally INTO the Key level then it is RESISTANCE. If it falls down TO the Key level then it is support.
Risk is 1 average range on the other side of the key level.
Upside is to the high of the rally prior to the retest of the Key level.
Target 32-32.50.
32.50 is also a level of LOW VOLUME which is "massive resistance".
Why didn't it trade any volume at 32.50? Because there was a huge seller there and it drove it down under that price. The first time back to it you will see a meaningful reaction.
Cheers.
Tim
11:32AM Friday April 8, 2016
GM 29.48 last, 28.50 stop, 32.50 target.
Comment:
Barron's Cover story is helping lift GM this morning. Barron's forecast a 25% upside potential for GM & Ford.
Comment:
The 32-32.50 target window was reached today.
Trade closed: target reached
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