General Motors (GM-N) had a sharp decline from US$66.56 in January, 2022, to US$30.33 in July (A-B) below a falling trendline (dotted line) and below the falling 40-week Moving Average (40wMA). The stock then settled in a wide horizontal trading range mostly between US$30 and US$43 (dashed lines). The recent rise above this range signaled a breakout and the start of a new uptrend (C).
Behaviour indicators including the rising 40wMA confirm the bullish status. There is good support near US$43; only a sustained decline below this level would cancel the current upside potential.
Point & Figure measurements provide targets of US$54 and US$59. The large trading range (dashed lines) supports higher targets.
The Globe and Mail
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com