General Motors had a great week. The real question is whether it can fire on all cylinders? I like the chart as the whole industry group had a great week. This stock pays a 4% dividend! Hunting through the indicators, the SCTR suggests the stock is moving into the top quartile in price performance. The relative strength is is breaking out to six month highs which is a nice bullish trait. I particularly like the weekly full stochastic turning up just below 50. That can also be a bullish signal. One signal that looks particularly compelling is the PPO is also breaking a one-year trend line. I find that signal quite compelling with paired with the other strong signals. Momentum should change before or with price. This is a timely signal as price breaks above the trend line. It is also nice to see the long term support level of $34 hold.
This week there are a lot of charts changing. If you are looking for some positive areas of the market to investigate, I would strongly encourage you to look at my Weekend Wrap!
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Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts for Dummies
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The Canadian Technician