The question on everyone's mind: Will GENERAL MOTORS CO breakout?

Our stock screener has detected a potential breakout setup on GENERAL MOTORS CO (NYSE:GM). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:GM.

Technical Analysis Observations

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Taking everything into account, GM scores 8 out of 10 in our technical rating. In the last year, GM was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, GM did better than 89% of all other stocks. On top of that, GM also shows a nice and consistent pattern of rising prices.
• GM is one of the better performing stocks in the Automobiles industry, it outperforms 97% of 42 stocks in the same industry.
• GM is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so GM is performing more or less in line with the market.
• In the last month GM has a been trading in the 49.96 - 55.21 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of GM contains the most current technical analsysis.

How does the Setup look for NYSE:GM

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:GM has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, GM also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 52.66, a Stop Loss order could be placed below this zone.

How to trade NYSE:GM?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.