GM breaks below 100-day moving average for the first time since November 21st
General Motors Company (GM) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, GM finished the week -8.59% lower at 34.69 after losing $1.01 (-2.83%) today, slightly underperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 34.69 marks the lowest recorded closing price since October 30th. Trading $0.49 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, GM lost -5.02% on the following trading day. Closing below Thursday's low at 34.91, General Motors confirmed its breakout through the prior session low after trading up to $0.36 below it intraday.
Daily Candlestick Chart (GM as at Dec 07, 2018):
Friday's trading range has been $1.38 (3.89%), that's slightly above the last trading month's daily average range of $1.13. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GM.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 34.55 during the day, the market found support at the 50-day moving average at 34.55. The stock closed below the 100-day moving average at 35.47 for the first time since November 21st. After having been unable to move above 35.75 in the previous session, GM ran into sellers again around the same price level today, missing to move higher than 35.93.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test November's nearby low at 33.85.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for General Motors. Out of 25 times, GM closed higher 52.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 68.00% with an average market move of 1.17%.