Isn’t it funny how times change but not really. This time last year I was buying Ford, (F), and rode it for a really great trade before getting stopped out. Now General Motors, (GM), is setting up as a buy. Take a look at the chart below:
After a strong run higher from October to December GM pulled back and bounced just above the previous low. The price action set up an AB=CD pattern that targets a return to the previous high at 42. The stock is at a major hurdle right now, offering a trade opportunity. The resistance at 36.80 with the 200 day Simple Moving Average (SMA) just below presents a trigger and a natural stop area.
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