GM Surging on Buyback & Dividend News! Can Bulls Push to $50+?Technical Analysis for February 27, 2025:
1. Current Price Action:
* GM surged on buyback and dividend news, reaching a high of $50.19 before pulling back to $48.60.
* Forming an ascending wedge pattern, indicating either a continuation or a breakdown.
* POC (Point of Control) at $48 is the key level to hold.
2. Key Levels to Watch:
* Support: $47 (HVL), $46, $45.67 (Major downside risk).
* Resistance: $49 (Breakout level), $50.19 (Recent high).
* Upside Targets: $50.19, $52+ if momentum continues.
3. Indicators Analysis:
* MACD: Bullish but flattening out—needs volume confirmation.
* Stoch RSI: Oversold, indicating a potential bounce.
* Volume Profile: Strong liquidity at $48, suggesting accumulation.
GEX & Option Strategy for Tomorrow and the Week:
1. Gamma Exposure (GEX) Insights:
* Call Walls: $50, $52 → Resistance zones.
* Put Walls: $45, $44 → Downside risk.
2. IV & Sentiment:
* IVR: 40.7 (Moderate)
* IVx Avg: 36.5 (Stable)
* Call Positioning: 20% bullish sentiment.
* GEX Sentiment: Leaning bullish—if GM stays above $48, momentum favors upside.
3. Trading Suggestions:
* Bullish Setup: If GM holds $48, consider long positions targeting $50-$52, with a stop at $47.50.
* Bearish Setup: If GM fails $48, short setups targeting $47-$45, stop at $49.
* Options Play: Selling put spreads at $46 or call spreads near $50 resistance.
📌 My Thoughts & Suggestion:
* GM's rally is news-driven, meaning follow-through volume is crucial for further gains.
* Holding above $48 is key for a continued push toward $50-$52.
* A breakdown below $47.50 could bring $46 into play.
⚠️ Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage your risk before trading. 🚀