General Motors (GM) Drives South Again, Here’s The Trade
Leading automaker, General Motors Co (GM), has been steadily falling since early June. The stock topped out at $64.30 a share on June 7th 2021. Since that high pivot, the shares have declined by 25% and currently trade around $48.00 a share. Last week, the company announced a recall for its Chevy Volt. The company said that this recall will cost the company around $1 billion and take time to implement. This news has certainly weighed on the stock price. Traders should note that General Motors Co (GM) stock is now trading below its 200-day moving average putting it in a weak technical position on the charts.
The next major support area for General Motors Co (GM) stock will be around the $44.00 area. This support level is where the stock broke out in January 2021. Often, when stocks backtest their prior breakout level they will be defended by the institutional crowd. This is also a major retrace level that should add even more strength to the support level when tested. I will look to be a buyer of General Motors Co (GM) shares around this $44.00 area.
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