The stock has had plenty of newfound momentum as it gears up its autonomous driving and electric vehicle platforms.
On a conference call, management said it remains committed to this strategy, pouring billions into the technology. However, CEO Mary Barra said the company was not considering bitcoin at the moment - something Tesla (TSLA) - Get Report recently invested in and plans on accepting as payment from its customers.
GM’s commentary went alongside a top- and bottom-line beat, as revenue climbed more than 21% year over year.
Wall Street seemingly liked the results, bidding shares higher in premarket trading. Since then though, the stock has fallen about 5% in Wednesday’s regular session.
Trading General Motors
Shares of General Motors were trading back up toward the recent highs ahead of earnings, as bulls were looking for another push higher.
Instead they are getting a dip, with buyers stepping in around the 21-day moving average. To be honest, that’s pretty healthy price action given how far the stock has rallied.
Keep in mind, GM stock has about doubled from its September low. What can investors expect now?
If the 21-day moving average is solid support, look for a move back above the 10-day moving average. That could put $57 resistance back on the table.
If the stock can break out over this level, then $60 is in play along with the two-times range extension.
On the downside, I would like to see GM hold the 21-day moving average and the $51.50 level. The latter mark comes into play near the 161.8% extension.
Losing these marks could put the January low in play at $48.71, as well as the 50-day moving average. So far, the 50-day moving average has been solid support over the past few quarters, something bulls will want to remain true moving forward.
For now, let’s see what type of bounce we can get from the 21-day moving average. A break could put sub-$50s in play, while reclaiming the 10-day moving average may put $57 back on the table.