GM pushes through Friday's high
General Motors Company (GM) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
GM ended Monday at 26.94 gaining $1.06 (4.1%) on low volume, significantly outperforming the S&P 500 (0.38%). Trading up to $0.44 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 4th, GM gained 2.46% on the following trading day. Closing above Friday's high at 26.57, the stock confirmed its breakout through the prior session high after trading up to $0.65 above it intraday.
Daily Candlestick Chart (GM as at Jun 01, 2020):
Monday's trading range has been $1.31 (4.97%), that's above the last trading month's daily average range of $1.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GM.
After spiking up to 27.22 during the day, the share found resistance at the 100-day moving average at 27.07.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the close-by swing low at 25.69 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 100" stand out. Its common bearish interpretation has been confirmed for General Motors. Out of 18 times, GM closed lower 55.56% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 61.11% with an average market move of -1.16%.