General Motors (NYSE: GM) stock chart offers a wealth of knowledge for both new and seasoned investors. The stock has fallen from a peak $43.20 to less than $5 a share (-88%) in just under 1 year as investors bet on a GM bankruptcy.
By applying simple technical analysis traders can view key buy and sell signals, resulting in smarter and more profitable investment decisions.
Regardless if GM declares bankruptcy there is a lot to learn. Take a look at the following stock chart of General Motors (NYSE: GM) and then read through the numbered points for an added explanation.
Note: Some of these patterns may be hard to see (1,5,9 specifically) so I advise pulling up another chart of GM on your own and taking a closer look.
1. The blue 1 is was arguably the beginning of the end. GM stock broke through huge multi-year resistance and surged above $38. Within five days though GM had already collapsed back under, a bearish sign. This eventually lead to a tumble towards $29 support (2).
2. The blue 2 shows where GM fell below key $29 support.
3. The blue 3 is a great example of how this once support line became resistance as GM rallied back to $29. The rally failed to materialize.
4. The blue 4 shows how GM attempted one more rally which met its end at $29 resistance.
5. The blue 5 shows a small bear flag as GM fell below short term support at $25.50, rallied back to it but could not continue momentum, eventually leading to the stock to fall all the way below $18 in mid March.
6. The blue 6 shows a critical line of support that once broken led to the next big leg down for GM stock. Once the stock fell back below $20 it went on to lose over 50% of its value in just under two months. The stock bottom at $8.81 on July 15th.
7. The blue 7 is the last rally GM pulled together as the stock shot up above $12. It wasn't but a few days later that GM had fallen back and tested $10 support once again.
8. The blue 8 is where critical $10 support fails as the stock fell on heavy volume to close at $8.51 on September 29th.
9. The blue 9 though hard to see is the latest bear flag which has lead GM to its latest move below $5. It was the last key chance investors had to walk away from the stock.
- Example 15: General Motors <-- Currently Viewing
- Example 14: Identifying 8 Key Points on Google’s Stock Chart
- Example 13: 7 Great Lessons to Learn From Apple in the Last Year
- Example 12: A Technical Look at the Washington Mutual Brankruptcy
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