GM misses to close above 100-day moving average
General Motors Company (GM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
GM finished the month -2.24% lower at 25.30 after flat today, notably underperforming the S&P 500 (1.54%). Trading up to $0.35 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GM as at Jun 30, 2020):
Tuesday's trading range has been $0.85 (3.39%), that's below the last trading month's daily average range of $1.14. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GM.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 2nd, GM gained 6.06% on the following trading day.
After spiking up to 25.59 during the day, General Motors found resistance at the 100-day moving average at 25.56.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the nearby swing low at 24.25 where further sell stops could get triggered.
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 19 times, GM closed lower 52.63% 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 57.89% with an average market move of -0.93%.