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Wednesday, December 19, 2012

GM

I can think of a million reasons to stay away from GM, but none of them are technical.This has a very nice chart with well defined support and resistance, a decently strong price relative line, and a big gap up today on big volume. It did form the dreaded black candle today, but that is not always the kiss of death and this could easily keep moving up. This is not in a lng term up trend, as evidenced by the flat 200dma, but it is also no longer in a down trend. I'm not the type to invest in a company on government life support, and I wouldn't be surprised if they have to go through bankruptcy again in 5 years, but for now they appear to be starting an up trend and may provide some pretty good trading opportunities.

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