Will GM Stock Price Take U-turn from $32?

General Motors Co. GM stock price fell 12% (approx.) in August and eroded a big portion of market capitalization. It breaks down the crucial support of $36.00 with a high selling volume which invites further decline.

General Motor stock price slipped below the 50-day and 200-day EMA showcasing a downtrend. However, the current prices are trading far away from the EMA. So anytime a temporary pullback rally may trigger to test the EMA.

In the mid of July, GM stock price attempted to break the $40.00 hurdle. However, the attempt was not successful and buyers failed to give the follow-up momentum. Later, prices reverted down and declined by forming lower lows.

The downfall in the General Motors stock price halted near $32.00 and the price formed a bullish hammer candle. It shows that buyers are active and trying their best to rebound.

If the GM stock price continues to consolidate near $32.00. Then it might be a sign of base formation. GM stock price closed the previous session at $33.51 with an intraday rise of 0.36%. The market capitalization stands at $46.11 Billion.

GM Stock Price Looks Cheap at Current Levels?

GM stock price is in a correction phase and for a bearish pattern. However, the prices are near the long-term demand zone so the downside risk is low.

Till the General Motors stock price holds the $30.00 support. The probability of bouncing back remains high. Previously, many times GM share price had taken support near $30.00 and took a U-turn. So, investors are expecting a similar kind of pattern might be repeated again.

On the other hand, if the GM stock price drops below $30.00 then it might trigger the next phase of decline. The technical analysis suggests GM stock price is at attractive levels and the possibility of taking a U-turn is high.

General Motors Stock Price Analysis on Weekly Time Frame

General Motors stock (NYSE: GM) formed a bullish hammer candle on a weekly time frame. It shows that bears are losing momentum and bulls are getting active. If the broader market indices and other automobile companies recover.

The GM share price might also be impacted positively. The MACD curve is trading below the zero line but sloping sideways. It indicates GM shares might continue the consolidation for some time.

Conclusion

General Motors Co. GM stock price fell 12% in August and disappointed the expectations of long-term investors. However, the downfall seems to have taken a halt near $32 and buyers trying their best to rebound.

The technical analysis suggests that General Motors’ stock price is near the demand zone and the probability of taking a U-turn is high.

Technical levels

Resistance levels: $36.00 and $40.00
Support levels: $32.00 and $30.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They 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