Strength in anticipation of improved auto sales and the recall confession caused the stock to rally above its 200-day simple moving average (in green) on Wednesday. The stock traded as high as $37.04 at today's open but as of 11:00 AM was back to its 200-day, which is a key level to hold at today's close.
Courtesy of MetaStock Xenith
The weekly chart for GM is positive with the stock above its five-week modified moving average at $34.74 (colored in red) as its 12x3x3 weekly slow stochastic is rising (this is the red study below the bar chart). The new GM stock has not been publicly-traded long enough to have a 200-week SMA.
This week's value level is $33.11 with a monthly pivot at $36.67 and a quarterly risky level at $39.58. Our monthly pivot has been a magnet over the past two days.
Investors looking to buy should consider using a good 'til cancelled (GTC) limit order to but weakness to the five-week MMA at $34.74. Investors looking to book profits should consider using a GTC limit order to sell strength to the quarterly risky level at $39.58
At the time of publication the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff