GM Short Term Bear
I am not licensed or certified by any individual or institution to give financial advice. I am not a professional Stock trader.
I recently published an idea stating I was bullish on General Motors because I saw a rolling pattern. If, after earnings, it continued up I would buy a bullish play. It did, kind of, and I bought a Call option on Friday as I saw the stock price rising. However, as I continued watching GM it was not able to maintain those highs and instead fell on higher volume than the previous day. This was a bearish signal so I sold my Call a couple hours after I had purchased it and took a loss. After looking at General Motors again and realizing the S&P 500 was also unable to maintain a high I purchased a Put option in GM. I have this chart set to candlesticks so you can see the falling price and inability to maintain highs over the past couple days; however, I will also publish a follow up to this in line format because I think it will be easier to see the bearish patterns. I have marked one of the bearish patterns I see, and that is the Head and Shoulder pattern. Another reason I think GM has gone bearish, at least short term, is due to almost all the Exponential Moving Averages (EMAs) being above the closing price; and on top of that (no pun intended) they may also be acting as resistance. The 200 Day EMA is sitting around 40.00ish (I have the EMA line itself orange, and the horizontal support line where it may hit is purple). We'll see if that is enough to catch it or not. I still have the lines drawn showing what I thought was a rolling resistance and support because they still are good lines (in my opinion) and GM may eventually bounce back and forth between them again; only time will tell.
There was a Gap back in September 22-25, 2017 and the Stock used that a support on February 05, 2018. More Bearish signals, to me, are the lower highs from October of 2017 to current; as well as multiple Triple Tops, but I think those are easier to see in line rather than candlestick. The Market as a whole seems to be slightly erratic at the moment so if this doesn't pan out it may be best to just take a step back and until something more definite comes along.
I recently published an idea stating I was bullish on General Motors because I saw a rolling pattern. If, after earnings, it continued up I would buy a bullish play. It did, kind of, and I bought a Call option on Friday as I saw the stock price rising. However, as I continued watching GM it was not able to maintain those highs and instead fell on higher volume than the previous day. This was a bearish signal so I sold my Call a couple hours after I had purchased it and took a loss. After looking at General Motors again and realizing the S&P 500 was also unable to maintain a high I purchased a Put option in GM. I have this chart set to candlesticks so you can see the falling price and inability to maintain highs over the past couple days; however, I will also publish a follow up to this in line format because I think it will be easier to see the bearish patterns. I have marked one of the bearish patterns I see, and that is the Head and Shoulder pattern. Another reason I think GM has gone bearish, at least short term, is due to almost all the Exponential Moving Averages (EMAs) being above the closing price; and on top of that (no pun intended) they may also be acting as resistance. The 200 Day EMA is sitting around 40.00ish (I have the EMA line itself orange, and the horizontal support line where it may hit is purple). We'll see if that is enough to catch it or not. I still have the lines drawn showing what I thought was a rolling resistance and support because they still are good lines (in my opinion) and GM may eventually bounce back and forth between them again; only time will tell.
There was a Gap back in September 22-25, 2017 and the Stock used that a support on February 05, 2018. More Bearish signals, to me, are the lower highs from October of 2017 to current; as well as multiple Triple Tops, but I think those are easier to see in line rather than candlestick. The Market as a whole seems to be slightly erratic at the moment so if this doesn't pan out it may be best to just take a step back and until something more definite comes along.
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