GM trade ideas
GM BULLISH - After Good NewsAs we are publishing this idea, GM pre-market is at 35.01. If GM can break past 35.20 downward trend line, we are looking to go long.
General Motors (Buy/Long) I think that looking at stocks that have been forgotten can often uncover substantial upside with attractive risk-to-reward ratios. General Motors currently trades at a 22-month support level after having been sold off from $44 to $33. You can also play the upside with minimal layout using call options.
Buy at current levels : $34.38
Stop-loss: $32.80
Take Profit Target: $38.00
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GM Price Trending Down 9 Days in a RowGM Price Trending Down 9 Days in a Row. Since this spiral started on 28-Aug-2018, the stock has dropped -10.1% in total. This is the longest downward trend in the last year for GM. I look at Bear Put and Call spreads to take advantage of this trend. See full analysis in my video.
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GM 2618 and demand zone long opportunityNo matter how hard this company had tried, how many good news it had, how good the stock market is, and how charming it is for value investors,
GM literally did nothing on the last 2 years' bull market.
As TSLA became more and more controversial, car investors may also have a look on this super low-PE stock.
Indeed, it had terrible relative weakness than its peers based on the stock price performance,
but it had solid earnings quarter by quarter and a very fair pricing on this bull market,
I believe it still can play as a defensive role on the portfolio!
It had a exhaustion gap around 38-39 , so I would more like to make use of the recent pullback to long this 2618.
Let's see how it goes!
GM: Breakdown from long-term wedge GM is breaking down from a massive long term wedge which bode ill for the stock. In the immediate time horizon, would expect GM to shoot for a downside ABCD completion at $32.40, -8%. Would reassess at that point for any bounce/retest of the wedge support. It is amazing to note how much US auto sales have declined from 12 months ago when it peaked at 18.5mn SAAR. As of end Aug, US car sales stands at 16.6mn SAAR. Throw in some cost increase from the new NAFTA bill (requiring workers to be paid $16/hr) and perhaps some Chinese boycott of GM/Buick to thank Trump for all the tariff love. Lots of reasons to hate US auto now.
P.S. If you think this is a pure GM play, you are wrong. F is stuck in a perpetual death spiral with immediate ABCD completion target of c.$8.70, c.-8%.
GM Testing SupportsShares of GM are looking interesting right here, right now.
Fundamentally, shares are cheap at 5.8x forward estimates. They also sport a 4.3% dividend that looks safe for the foreseeable future.
The technical setup is what has me buying. Shares are testing a confluence of supports: an upward sloping trend line going back several years, previously held support at about $35, and the 200-week moving average.
Much like Ford (F), this looks like a good holding to sell calls against to boost income while you wait for the next cycle to begin.
I'm starting a small position today and will be adding on weakness. A stop loss will be about 10% below, as I intend on this being a longer-term position and want to give it room.
GM bullish momentum above USD 35GM is soaring back from USD 35 levels (close to USD 34,71 support level), supported by:
Fundamental:
-USA&Mexico trade deal, which will positively affect their exports/imports between USA and Mexico.
-Possibility of including Canada in the trade deal.
-Less tensions with China in terms of tariffs.
Technical:
-USA Index bullish momentum.
-RSI convergence.
-Strong support levels at USD 34 - 35 range.
As a result I see a bullish momentum above USD 35 level.
Enjoy your trading!
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$GM (GeneralMotors) ShortLooking at $GM we see price being rejected at 44.00 with an engulfing candle(4H) & TweezerTop (1D), to then re-test the 44.00 price on 6/18
After the re-test, it's been a clean downtrend till the 37.00 price.
Once it bounced off 37.00 it continued to trade sideways for 13 days before it broke down on 8/13.
I expect the price to re-test 37.00 before it continues its way down to 35.00
I've taken a short & will continue to monitor for a bounce at that price
GM - DAY TRADE SETUPWatch GM at the open if your going to play it short. It's opening right around the 100MA on the weekly chart. If it can break here it should go right to the 200ma.
Buying GM sharesOn the hourly chart of GM shares, the price managed to close the previous gap which coincides with 0.786 Fibo level. After that, the instrument has changed its trend direction according to Bill Williams` trading strategy into a bullish one and formed a buy fractal.
GM daily analysisGM currently stopped on the major 200 day moving average. The overall long term trend is up. Having a choppy climb from $19 since 2012 I think this is safe long play.
Buying once couple days of strength in bulls direction shown.
Selling if break and close for 2,3 days below that 200 ma
Weekly at mega support of $40ish. Breaking that would be a strong bear signal in which id go short.
Target of $43 - $45, resistance at $45.
Time frame 2 weeks
Happy trading :)
GM inside day, relative strength or not?Stock futures slumps for more than 1% in Asia market today.
Also, GM got an inside day here;
Yesterday it tried to break the 45.00 fig level and the bearish bat but failed, if the bulls are able to break the inside day,
the momentum probably is able to takeover the size.
Generally I am quite bullish in GM as it's ridiculously cheap with 6-7x multiples and solid dividends, so I'll skip the set-ups to short.
While, with regard to the potential gap down (with the market), the 1st point for this trade is to see if the inside day low 43.35 is broken.
If not, that means GM shows great relative strength against the market, which is great for this trade!
If it breaks the inside day low before breaking the inside day high, this trade doesn't exist anymore.
Let's see how it goes!
Ups: Did the German car manufacturing industry......miss something? Maybe this electric car thing? The market has recognized it already, but the Germans are still waiting for governmental subsidies and still pay high dividends instead of investing in R&D/ technology. Now some "big bills" for the this "Diesel Thing" will come in and again, this money won´t be invested. And more threats are around, like trade tariffs...
Looking forward to what will happen, maybe the Germans will wake up like a sleeping lion or just keep sleeping.
$62 target for GM ? Intriguing behavior:
- Same relationship found in yellow and orange waves:
(3) = 161.8% of (1)
(iii) = 161.8% of (i)
(4) = 61.8% of (3)
(iv) = 61.8% of (iii)
- Both degrees violate traditional EWT in the same manner.
- What currently in place:
(v) = 123.6% of (i)+(ii)+(iii)
Extrapolate this relationship to the higher degree:
(5) --> 123.6% of (1)+(2)+(3)
III --> 161.8% of I
Both extrapolated levels find each other at $62 level.
This is the expected maximum for wave III. Be aware that this is long term target.
GENERAL MOTORSA bullish signal on GENERAL MOTORS (GM). After the breakout of the dotted line, the price has realised a Pullback. Target in the area $ 44.30, the stop loss at $ 34.90.
