Time For the Other Car Company

• Posted by Greg Harmon
• on February 24th, 2014

Isn’t it funny how times change but not really. This time last year I was buying Ford, $F, and rode it for a really great trade before getting stopped out. Now General Motors, $GM, is setting up as a buy. Take a look at the chart below.

After a strong run higher from October to December it pulled back and bounced just above the previous low. The price action set up an AB=CD pattern that targets a return to the previous high at 42. The stock is at a major hurdle right now giving a trade opportunity. The resistance at 36.80 with the 200 day Simple Moving Average (SMA) just below present a trigger and a natural stop area.

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