Can General Motors Charge to New Highs? The Chart Says Yes

Can General Motors continue to push higher and hit new highs? The trend favors the bulls. Here are some upside levels to keep an eye on.
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General Motors  (GM) - Get Report remains hot as bulls continue to ride the electric vehicle trend higher in the stock.

While Tesla  (TSLA) - Get Report remains the EV king, it’s clear that GM, Ford  (F) - Get Report and others are coming for the crown. Of course, Tesla may remain atop the throne - but that won’t stop others from trying.

Tesla recently announced better-than-expected first-quarter deliveries , which helped launch the stock higher by 4.4% on Monday.

Not be outdone though, General Motors announced some pretty interesting news this month as well. It too had solid quarterly sales results. However, it was the EV announcements that made some waves.

Following in the steps of its EV Hummer, GM is also planning to electrify its Silverado pickup truck. Will that help the stock keep its charge as well?

Ford is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells F? Learn more now.

Trading General Motors

Daily chart of General Motors stock.

Daily chart of General Motors stock.

As you can see on the chart, GM stock has done a great job trending higher. Each dip to the 10-week and 50-day moving averages has been gobbled up by the bulls for months now.

That’s exactly what you want to see on these medium-sized dips - buyers stepping in with force.

Another bullish observation? Notice the way GM stock has pushed through key levels and then found those levels to be support.

For instance, notice how it pushed through the $48 to $50 area, then found this to be a support zone. Same with the $57 level.

Shares hit new all-time highs on Tuesday, but are struggling to extend off the $60 area and the two-times range extension. If shares break below $60, look for support at $57.

Below will put the 10-week and 50-day moving averages back in play.

On the upside, look for a move above the current 52-week high, at $63.44. Above opens the door to a larger rally, potentially putting $66.50 to $67 in play. That’s the 161.8% extension from the 2020 low to the prior all-time high made in 2017.

Above that and the $75 area could be in play, which is the 261.8% extension of the Q1 2020 range.