timwest
Long

GM Forecast for 10% rally

BATS:GM   GENERAL MOTORS CO
635 views
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 violated.
Note that volume disappeared when the stock fell to a new low.
Note the resistance zone overhead which will create supply from "break-even" sellers at that level.
Note that this can be a great trading stock for the next 5-6 weeks.
Note support in the double-blue boxes underneath the current price.
Fundamentally, GM is cheap relative to sales, earnings , cash flow, and the clear negative is weakness in Europe and the US Gov't's ownership position in GM shares.

Keep in mind that basing happened first in Crude Oil and then Oil Service stocks and now that crude oil has rallied a bit, it may put a slight headwind on the overall market for the next 3-6 months. Search for "OIH Base" here at Tradingview.

Cheers.

Tim West 1:50PM EST, August 15, 2012
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com

Comments

Agreed.
Reply
My comments from 11 days ago to buy GM on the pullback from $22 to $21 are working out very nicely! These gains are worth taking. Unexpectedly good news out of China, coupled with a highly negative sentiment environment (note the spike up in VIX chart that I pointed out several days ago), can lead to rapid price gains like we are seeing today. This is a good time to sell and wait for better trades to set up. Tim 2:18PM Friday
Reply
Agreed.
Reply
Followed.
Reply
Agreed.
Reply
Agreed.
Reply
Agreed.
Reply
Agreed.
Reply
Followed.
Reply
Agreed.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out