From a technical perspective, GM is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been downtrending for the last two months, with shares falling from its high of $30.68 to its recent low of $29.16 a share. During that move, shares of GM have been mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of GM have started to rebound off that $26.19 low and its now moving within range of triggering a near-term breakout trade.
Traders who are bullish on GM should now look for long-biased trades as long as it's trending above that recent low of $26.19 and then once it manages to break out above its 50-day moving average of $28.26 a share and takes out more near-term overhead resistance at $29.36 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 10.81 million shares. If that breakout triggers soon, then GM will set up to re-test or possibly take out its 52-week high of $30.68 a share. Any high-volume move above $30.68 will then put $32.08 to $33.47 into range for shares of GM.
Mondelez InternationalA food processing player that insiders are falling in love with here is Mondelez International (MDLZ), which manufactures confectionery products. Insiders are buying this stock into modest strength, since shares are up 7% so far in 2013. Mondelez International has a market cap of $48 billion and an enterprise value $62 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 16.13 and a forward price-to-earnings of 15.51. Its estimated growth rate for this year is 12.2%, and for next year it's pegged at 12.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $4.48 billion and its total debt is $19.42 billion. A director just bought 38,000 shares, or about $1.02 million worth of stock, at $26.90 per share. From a technical perspective, MDLZ is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has just started to spike back above its 50-day moving average of $27.04 a share and it's filling some of its previous gap down zone from a few weeks ago that started at $27.75 a share. If that gap gets filled soon, then MDLZ will start to move into range of triggering a near-term breakout trade.
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