Decision Time: General Motors Company (NYSE:GM) now sits in the perhaps the most difficult technical position — the stock has no urgency in its direction and that has left it at an inflection point. Watch the key moving average levels that we discuss below and further, watch the stochastics, technical oscillators and momentum readings for any kind of hint to direction.
The company has a three bull momentum rating which indicates an inflection point. It may seem obvious, but this is the time to put the stock on alert — a meaningful move in either direction now will likely swing momentum into a channel that could be decidedly up or down. With the current stock price and the moving averages showing signs of indecision, any consecutive day stock move in either direction will likely push the stock into a bearish or bullish momentum channel that could persist for the short-term. This is a critical inflection point. GM is up +10.1% over the last three months and up +24.0% over the last six months. The stock price is up +17.0% over the last year. The current stock price is $42.59.
GM Stock Returns
The technical rating goes from a rating of one, the weakest upside technical, to a rating of five, the highest upside technical. This is strictly focusing on price and technical — that means we focus on real-time stock price movement and then position it relative to the simple moving averages. To make the technical rating meaningful, the moving averages are also compared to each other. Golden Cross Alert: The 50 day MA is now above the 200 day moving average.
As we noted above — the back of the envelope rule here is that when shorter-term moving averages move above the longer-term ones, momentum is building. We have that right now.
Swing Death Cross Alert: The short-term 10 day moving average is now below the 50 day moving average.
Recall that when we see the shortest-term moving average (10-day in this case) fall below any other moving average (50-day in this case), it indicates weakening momentum.
General Motors Company has a three bull (inflection point) technical rating because its trading above its 10- and 200 day simple moving averages, but below its 50- day moving average. We also note that the 10 day moving average is below the 50 day moving average (“swing death cross”).
We now turn to the actual numbers driving this rating:
General Motors Company (NYSE:GM) rating statistics:
10-day moving average: $41.75
50-day moving average: $43.61
200-day moving average: $37.61
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