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How to Trade GM as It Joins the Rally in Ford and Tesla

General Motors stock is rallying on Monday, alongside Ford and Tesla. Here's how to trade it from here.

General Motors  (GM) - Get General Motors Company Report is pushing higher on Monday, as a trifecta of major automotive stocks buck the trend in the broader market.

The S&P 500 is down 1.5% and the Nasdaq is down about 2.5%. Yet GM stock is up over 1.5%, while Ford  (F) - Get Ford Motor Company Report and Tesla  (TSLA) - Get Tesla Inc Report are up 1.3% and 1.25%, respectively at last check.

Last week, General Motors stock sank on disappointing third-quarter sales.

Interestingly though, Ford is up on Monday with strong sales and impressive reservations for its F-150 Lightning, while Tesla is also higher after record third-quarter deliveries.

Here’s how we’re trading Tesla now, by the way.

So what’s got GM stock on the move today? Shares are rallying after an activist investor revealed its stake in the company.

Will it be enough to keep the stock driving higher?

Trading General Motors Stock

Daily chart of General Motors stock.

Daily chart of General Motors stock.

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In August, General Motors stock put in a low, bottoming near $47. Since then, we’ve seen several higher lows, as the stock looks to work its way out of a hefty pullback.

In all honesty, it’s not that much different than what Ford went through a few weeks ago.

General Motors has been pushing higher lately and just last week, it cleared downtrend resistance (blue line). With Monday’s gap-up, it’s also over last week’s high and the 200-day moving average. 

That's very constructive, but on the flip side, the stock is gapping into several key measures. They include the $55 mark, the 50% retracement and the 21-week moving average.

On the downside, keep an eye on the 200-day moving average and Monday’s low at $54.15. Below these marks could put the gap-fill level in play down at $53.38, along with the 10-day moving average.

The 10-day has been active support, so see that it remains the case should GM stock pull back. Below the 10-day and the 50-day moving average may be on the table. 

Over Monday’s high at $55.64 puts the 61.8% retracement in play, followed by $60. Above $60, and technically speaking, the high is in play at $64.30.

As much as I want to say the autos are back, GM stock definitely has some key hurdles in front of it. Over $55.75 and we could see it gain momentum. Otherwise, buying the dip may be in play.

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