Short around $36.60. The intermediate term target would be around $32. Stop zone few points above $37 on volume. This trade would be low risk high reward if successful.
Looks as if a lower high is forming around this level but I dont have that much conviction as the market held up again.
If the stop triggers GM can retest highs even maybe $40?
Overbought Stochastics on the
15, 60, daily and weekly timeframes.
Looking for a pullback to the 20 day moving average.
Short Entry 24.50 to 25.
Target 23
Note: If the futures are up Monday morning I will look for a entry into short above 25. If the futures are weak Monday morning I will enter short premarket.
The decline in GM shares from the peak in Feb over $27.50 to its low in July under $19 is over and the stock has found a base valuation at the $19.50-$20.00 level. I note the resistance at the $22 to $23 level and that is why I would expect to see several sharp reactions from that price level before surmounting that price.
Note the downtrend channel has been...
