Rev Your Engines: GM's Breakout Setup for June

Author

Zachly Trades
June 17, 2024

Hello, fellow traders and investors!

This month, we're taking a close look at General Motors (GM) and the exciting setups it's offering. As we dive into the chart, you'll see why this classic American stock might be revving up for a big move. 🏎️💨

The Setup: GM Breaks Out

Let's start with the technicals. As you can see in the chart below, GM has recently broken out and is now retesting support. This setup is visible both on the RSI and the candlestick chart, creating a compelling case for a long entry. 🚀

Why This Matters

A breakout followed by a retest of support is a classic bullish setup. It's like the market is giving us a second chance to hop on board before the next leg higher. The RSI is also showing a supportive pattern, indicating that the stock isn't overbought and has room to run. 📈

Trade Idea: Long GM

Here's how you can look to trade this setup:

  1. Entry Point: Look to enter long positions around the current support level of $46.72. This area has been tested multiple times, making it a strong level to watch.

  2. Stop Loss: Set a stop loss below the recent lows around $45. This gives the trade some room to breathe while protecting your downside.

  3. Target: Aim for the 161.8% Fibonacci extension level at $48.57 as your initial target. If momentum continues, the 261.8% extension at $52.47 could be in play.

The Bigger Picture

GM isn't just a technical play. The company is making significant strides in electric vehicles (EVs), and recent earnings reports have been strong. This combination of solid fundamentals and a bullish technical setup makes GM a stock to watch this month. ⚡🔋

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Stay tuned for more updates and let's make June a profitable month! Happy trading! 💰📊

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