General Motors (NYSE: GM) stock price for the past few months, has been hovering near $37 below the ideal neckline mark of $40 and continues to consolidate in a narrow congestion range between $30 – $40. However, buyers are trying to surpass this range and facing rejection multiple times. This rejection shows that the sellers maintain a firm grip over the charts.
However, the price shows a recovery, forming a rounding bottom pattern and bouncing back from the support of $30. On the lower side, buyers defended the support range. Similarly, on the higher side, sellers defended the supply range and led the stock price to trade in the narrow range, forming a tight range that made investors cautious.
The ongoing price action shows that although GM stock is in a narrow range, it is bullish and is preparing for an extensive move.
General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide. The Company provides automotive financing services through General Motors Financial Company, Inc. (GM Financial). GM North America (GMNA) and GM International (GMI) are its automotive segments.
At press time, GM stock was traded at $37.48 with an intraday surge of 2.13% showing buyers attainability. However, the intraday trading volume decreased by 1.89% to 12.486 Million.
Daily Charts Shows Consolidation of Price
On the daily charts, GM stock is trading in a narrow range and shows high volatility. The battle between the buyers and the sellers is indecisive as the stock lacks momentum, and is yet to cross over to either side.
As per the technicals, GM stock was trying to sustain above the neutrality mark of 50% Fib level and formed a bullish marubozu candle on it while attempting to gain momentum.
Short Term Charts Shows Cup & Handle Formation
On the 4-hour charts, GM stock showed a cup & handle pattern and attempted to regain the shine above $40. The price action shows that if the stock can cross the trendline near $40 and sustain above it, it could lead to a massive breakout and reach a trajectory near $50 in the upcoming months.
If further rejection from the trendline could occur, the stock will again retest the base near $30.
The RSI curve showed a sharp rise from the selling region, forming a positive crossover suggesting a positive outlook.
The MACD indicator also initiates green bars on the histogram showing a bullish crossover on the charts.
Conclusion:
General Motors Stock is attempting to shine again and with investors putting in efforts to smash through the trendline mark of $40.
Technical Levels:
Support Levels:$30
Resistance Levels:$40 and $45
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/28/general-motors-stock-hovers-below-40-can-bulls-regain-momentum/