GM ATH Break Weekly Options PlayDescription
Been watching these fans lines play out in accordance with the Fan Principle in general technical analysis, but did not want to enter a position off of them.
Now, off of the third fan break and and ATH break, it seems that the principle has held true, and signaled an end to the intermediate corrective trend.
The break and close over ATH signals a supply exhaustion.
Using long calls.
Long Call
Levels on Chart
SL < 64
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/26 65C
R/R & Breakevens vary on fill.
The long call is placed ATM for higher chance of profit.
Manage Risk
Only invest what you are willing to lose
Trade ideas
GM bull flag on the hourly chart and the 5 minute chart
$GM +$65 (over $65 for Calls)
Price targets: $65.7, $67.7
Technical Analysis: Bull flag breakout on the hourly and the 5sma
News Catalyst: "General Motors is steadily approaching a $100 billion market valuation after shares of the automaker reached a record high on Wednesday. GM’s gains come as shares of newly public electric vehicle start-ups Rivian and Lucid Group, which briefly surpassed GM in market cap Wednesday... GM is celebrating the opening of its first dedicated electric vehicle plant in Detroit. GM CEO Mary Barra rang the opening bell from the facility earlier on Wednesday; President Joe Biden will visit the plant in the afternoon." - CNBC
GM1. Targets of the correction on the chart (turquoise lines). Now the company has lost about 40% of the growth of the expected wave (III). Globally, it can reach the previous high, at least with a target of 64.26. Of course, the price may go much higher than the designated level, but this is a much more long-term view, this topic has many problems.
On the one hand, growth could be driven by the company's shift towards EV production - a clear trend in the new decade. Indeed, there is this trend or it is imposed on us by big capital, it is better to tell serious economists and experts on conspiracy theories. Another important point for growth is that production is lagging behind sales, but this is decreasing car inventory around the world, which could cause pent-up demand. According to the US Automotive Innovation Alliance, production will decline by 1.27 million vehicles, however: "there are expectations that the semiconductor problem may return to normal in the second quarter, but it may be a longer process."
For fans of financial indicators like p / e, ebitda, p / s - the company is one of the cheapest on the market, comparing with the same Tesla. But it is at about the level of Volkswagen. ROE = 14.39% - can be considered good. As the GM and green tech business scales, the market may overestimate how much its stock is worth. And now is a good time to try to be one of the first to jump on this train.
There is also a trend for new fuel cells like Hydrogen. General Motors has been working on fuel cells for over 50 years, giving it the foundation and technical know-how to adapt quickly. The company has a range of batteries and is spending more than $ 35 billion on various forms of clean technology through 2025 to build on the results of its research. The company has partnered with Navistar to supply its Hydrotec fuel cell feed cubes for use in commercial trucks. Also partnered with Westinghouse Air Brake Technologies to use its batteries and fuel cells on a new generation of freight locomotives. He is even involved in a demonstration project with the privately held Liebherr Aerospace to study the use of hydrogen to power aircraft. (WORTH SEEING AND Plug Power)
2. Targets of analysts:
9/10/21 Wells Fargo Maintains Overweight 63.0
8/09/21 Jefferies Maintains Hold 53.0
8/05/21 Credit Suisse Maintains Outperform 75.0
7/08/21 Wedbush Initiates Coverage On Outperform 85.0
Institutional investors have been buying securities more actively than selling securities in the last 2 quarters.
Of the largest, it can of course be noted that Berkshire Hathaway Inc reduced its share by 10.4% (total ownership 3.55 billion), Morgan Stanley increased its share by 12.3% (total ownership 779 million), Price T Rowe Associates Inc. MD reduced by 33.8% (total ownership 746 million), UBS Asset Management Americas Inc increased its share by 8.7% (total ownership 348 million)
3. It is also worth noting that the recovery of the automotive business will have a positive impact on companies that are related to plastics and chemicals (TiO2)
P.S. I apologize for the possibly crooked text, I use a translator to have contact with a foreign audience.
GM Weekly Options PlayDescription
GM Huge supply line right at the previous ATH, 64. I was initially looking for a break and close over this line for a long entry, but this is a solid rejection for a credit spread.
Call Credit Spread
By Expiration
Max loss occurs at any strike over the long call (66)
Max gain occurs at any strike under the short call (64)
SL > 340
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/19 66C
SELL
11/19 64C
R/R & Breakevens vary on fill.
Looking to make 30% return on collateral in 1 week.
The short call is placed at previous ATH for good balance of success and profit.
The long call is placed 2 points away IAW collateral requirements, risk tolerance, and R/R.
Manage Risk
Only invest what you are willing to lose
General Motors Company (GM) - shortSignals
Position: Short
Target Price : $58
Entry Price: $64
Stop loss: $66
Indicators
RSI is above 70
STOCH is above 80 and the indicator has negative, meaning is could have already reached the peak
MACD is only slightly above the signal line
The stock price is in the upper band of the Keltner Channel
Analysis
The stock is in an uptrend, made of impulses and pullbacks but has now reached the resistance level after two long bullish candlesticks. Nevertheless the MACD does not signal a strong bullish momentum and Stochastic indicator and RSI already show an overbought stock. Furthermore the stock price is currently above the upper band of the Keltner channel, so we can expect it to retrace back to the closest moving average. The entry price is at resistance level, and we use the Fibonacci retracement tool to set the profit target at the 0.618 level.
No financial advice.
11/14/21 GMGeneral Motors Company ( NYSE:GM )
Sector: Consumer Durables (Motor Vehicles)
Current Price: $63.40
Breakout price trigger: $64.00
Buy Zone (Top/Bottom Range): $62.75-$60.00
Price Target: $74.00-$76.00 (1st)
Estimated Duration to Target: 47-50d (1st)
Contract of Interest: $GM 1/21/22 70c
Trade price as of publish date: $2.03/contract
Breakout or Rejection!?Money Makers!
GM is on its way to retest previous highs. I possible breakout or rejection is incoming. Let's stay patient and have your orders ready! Let me know what you think will happen below. I'm curious.
Love it or hate it, hit that thumbs up and share your thoughts!
It's all about Market structure, Area of value, and Entry Trigger.
Don't trade with what you're not willing to lose. Safe Trading Calculate Your Risk/Reward & Collect!
This is not financial advice.
Inverse Head and ShouldersPossible stop where you see support.
Safest place I see for now is perhaps under 56, or right around there.
Long entry over neckline with an uptrend/59.11.
Head is at 47.07
RS is 53.60
LS is 52.60
No recommendation.
Intra-year cup and handle is trying to form.
This is not to long entry level today but is still fighting the resistance of the neckline today.






















