GM's Stock Races North: How Is The Chart Looking?

General Motors Company GM announced it will increase its investments in its electric and autonomous vehicles to $35 billion between 2020 and 2025.

The 75% increase, over GM’s pre-pandemic commitment, is intended to help GM become the North American market leader in EVs, the global leader in battery and fuel cell technology and the first car manufacturer to commercialize AVs at scale.

On Tuesday, GM announced it has partnered with Wabtec to develop and commercialize GM’s Ultium battery technology and HYDROTEC hydrogen fuel cell systems to be used in Wabtec’s trains. Together the companies plan to develop the necessary technology for decarbonized and zero-emission locomotive transportation.

Tuesday’s news helped GM’s stock reverse a downtrend it had been trading in since making a June 7 all-time high of $64.30, while Wednesday's news caused the stock to gap up almost 3%.

See Also: 5 Stocks To Watch For June 16, 2021

The General Motors Chart: After gapping up Monday morning, sellers came into GM’s stock and it dropped down into the gap but not low enough to fill it. GM’s stock was unable to fill the gap completely because buyers came in when it hit the support of the eight-day exponential moving average (EMA).

GM’s stock was able to fill a lower gap at the $60 level on Monday after retracing from its all-time high.

GM’s stock often leaves small gaps behind when the company releases news but, notably, its gaps almost always fill. Bulls would feel more confident if GM’s stock dropped down to fill Wednesday’s gap as soon as possible for a move higher in the coming days.

GM is trading above both the eight-day and 21-day EMAs with the eight-day EMA trending above the 21-day EMA, both of which are bullish indicators. It's also trading 30% above the 200-day simple moving average, indicating the overall sentiment in the stock is bullish.

Bulls want to see GM’s stock drop down to completely fill the gap and bounce immediately back up above support of the eight-day EMA. If GM holds the level as support, it has room to trade back up towards its all-time high although may find a little resistance at its previous all-time high of $63.44.

Bears want to see GM fall down to fill the gap and for the eight-day EMA to then act as overhead resistance. A loss of that level as support could cause GM’s stock to revisit the $59.58 mark.

GM Price Action: Shares of General Motors were trading up 2.4% to $62.26 at publication time.