timwest
Long

GM General Motors pulling back to massive support

NYSE:GM   GENERAL MTRS CO
1614 13 22
a year ago
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.
11 months ago
Comment: Barron's Cover story is helping lift GM this morning. Barron's forecast a 25% upside potential for GM & Ford.
11 months ago
Comment: The 32-32.50 target window was reached today.
11 months ago
Trade closed: target reached
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LOF
a year ago
h
Reply
G13Man
11 months ago
just read an article about subprime car loans and student debt
do you think Barron s took that into consideration
or is barrons looking short term ?
Reply
timwest PRO G13Man
11 months ago
I read the subprime articles which have been around for awhile now. The banks are still lending aggressively to the sector, so I would continue to use setbacks for trading entries on the long side.
Reply
G13Man timwest
11 months ago
true enough
plus we are traders and not investors
and yes , i am cautious on my long trades as well PUTs trades with protective stop then trailing stops when in profit
Reply
2use
11 months ago
Will you be holding through earnings though?
Reply
timwest PRO 2use
11 months ago
I would cut back to half-size positions. I think the risk isn't necessary to take.
Reply
Alekznder
11 months ago
Excellent and unique approach as usual. I manage to learn something entirely new from you every week!
+1 Reply
vaicru PRO
11 months ago
well done !
+1 Reply
timwest PRO vaicru
11 months ago
Thanks @vaicru
Reply
TomPower vaicru
11 months ago
Jim I didn't read it but I followed this post for quite a while and was amazed at its success
+1 Reply
grcla PRO
11 months ago
Excellent trade, thank you!
+1 Reply
edmunch
9 months ago
Hi Tim! Is it too soon to talk about a broken support??
Reply
timwest PRO edmunch
3 months ago
@edmunch, What did you want to talk about?
Reply
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