General Motors Co. (GM) - Get General Motors Company (GM) Report  is in rally mode Thursday morning. GM stock is up nearly 2% on fairly heavy volume in early trading. This impressive move has driven shares back up to heavy resistance near the July peak near $36.50. A clear break above this level will put GM on the road to higher ground. Until then, GM stock continues the process of firming up above a very solid support zone.

Back in late-May, GM finally regained its footing after a steady selling wave drove the stock sharply lower from the March peak. The stock took out layers of support, including its upward-sloping 200-day moving average, along the way. By early June, the downside momentum had eased, allowing GM to begin a recovery. The stock began to perk up noticeably two weeks later and, as the month ended, GM had retaken its 200-day.

GM rallied into mid-July but has been soft since. The stock consolidated above key support through all of August and, as the month comes to a close, appears headed for a new rally leg. GM is still rangebound but is on firm footing. In the near term, investors should consider the stock a low-risk buy near current levels. GM has a solid support zone in place between $35 and $36. A clear break below the $34 area would violate the August lows and indicate that more consolidation is ahead.

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At the time of publication, the author was long GM.