GM Tests 50 DMA and breaks out of Wedge

WE have had a declining wedge after a big move up. After NAFTA news reset the indicators, looks like we push higher. Good volume on the move higher and strong into the close.

Note

I sold my GM this morning due to the big gap up at the open. Will look to re-enter based on what happens tomorrow. I am still bullish and long on this stock but possible to get a better entry or buy calls instead.

Note

I have made a revision to my original upward trend line using the candle wicks instead of the bodies. GM has tested the former wedge upper resistance line 3x so we are coming to a decision point. The new chart is below

I am also using another chart showing the hidden key levels. You can see below that we can either move up to 45 or back down to 41 to test the lower support line for a 3rd time.

I assume earnings next week will determine which direction we go.

Note

I was early in the trade looking for the breakout above the trend line. But with lower gaps closed at 40.66 and 39.5 with the recent selloff, and the great earnings release and strong move over the upper trend line, new target is 48 for the next move up.

stvkro

I am a novice so use my idea at your own risk.

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stvkro

I am a novice so use my idea at your own risk.

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