GM ended up in bankruptcy court in June 2009, but the company made a good comeback by shutting down its loss-making or less profitable vehicles—brands like Hummer, Saturn, and Pontiac. Now, let’s take a look at GM’s key technical support and resistance levels for the week ahead.
Didn’t confirm a symmetrical triangle
GM’s hourly price chart was forming a symmetrical triangle in the week ending September 16, 2016. However, the price couldn’t confirm the formation by falling below the lower line of this triangle last week. Instead, the price rose and recovered sharply after the pattern failed.
GM’s support and resistance levels
Currently, GM’s stock found a minor horizontal resistance near $32.45—a swing high of July 21, 2016.
Last Friday, the stock settled at $32.12. It posted a loss of about 0.8% for the day. After sustaining the suggested resistance at $32.45, the price might remain subdued. Only an early violation of this level would attract fresh buying in the stock and confirm underlying bullish sentiments. On the downside, the stock will likely find immediate support near $31.40.
Understanding technical price levels
Upward stock price movements could see resistance around the resistance levels. Downward price movements might hit a roadblock around the support levels.
However, a breach of support or resistance could trigger a sharp price action. This means that the price typically witnesses a sharp rally if a key resistance area is violated. It witnesses a sharp fall if a key support level is violated. In both the cases, investors could initiate a favorable position or manage their existing position to benefit from these price levels.
In the next part, we’ll discuss Ford’s (F) key technical support and resistance levels.