GM closes higher for the 3rd day in a row
General Motors Company (GM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GM finished Thursday at 22.56 gaining $1.07 (4.98%), strongly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GM as at Mar 26, 2020):
Thursday's trading range has been $1.91 (8.83%), that's slightly below the last trading month's daily average range of $1.98. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GM.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 23.15 (R1). After having been unable to move lower than 21.00 in the prior session, General Motors found buyers again around the same price level today at 21.06. The last time this happened on March 4th, GM actually lost -4.54% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 23.15 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for General Motors. Out of 541 times, GM closed higher 51.57% 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 three trading days, showing a win rate of 52.87% with an average market move of 0.16%.