General Motors Might Be Ready To Test Resistance Again Soon

General Motors Company GM shares are trading higher Monday amid a strategic supplier agreement announced with Wolfspeed to develop and provide silicon carbide power device solutions for General Motors’ future electric vehicle programs.

General Motors was up 2.92% at $54.68 at last check Monday at publication.

General Motors Daily Chart Analysis

• Shares were pushing higher in what technical traders call an ascending triangle pattern, but have since dropped below the higher low trendline.
• The $60 level has held as resistance in the past and may continue to in the future. The higher low trendline was holding as support for a time, but recently saw a break below this area possibly causing a trend change.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been climbing and sits at 66 showing that the buying pressure in the stock has been increasing. The RSI now nears the overbought range near the 70 mark.

See Also: Why General Motors Stock Is Trading Higher Today

What’s Next For General Motors?

Bullish traders are looking for the stock to bounce and start to turn around and head higher. If the stock can bounce back above the higher low trendline once again it may resume on its bullish push.

Bearish traders are looking to see the stock continue to fall lower and hold below the higher low trendline. Bears are looking to see the trend change with a possibility that the stock continues to push lower. Bears are looking to see the stock dip below the moving averages for a possible change in sentiment.

Photo: 2021 GMC Yukon courtesy GM