General Motors (GM) stock is inching closer to an upside breakout and surge higher. Let's get our technical analysis owners manual and check out the charts of GM, which also happens to be Brad Ginesin's stock pick of the year for 2022.
In this daily bar chart of GM, below, we can see that prices have rallied from the middle of December and have climbed back above the 50-day and 200-day moving average lines. The highs of June and November are going to be tested and probably broken.
The On-Balance-Volume (OBV) line has been steady/basing since September. The Moving Average Convergence Divergence (MACD) oscillator is very close to a fresh outright buy signal.
In the weekly Japanese candlestick chart of GM, below, we see a positive setup. Prices are in an uptrend above the rising 40-week moving average line.
The weekly OBV line shows the beginning of a turn higher in early December. The MACD oscillator shows the two moving averages on top of each other but still above the zero line.
In this daily Point and Figure chart of GM, below, we can see an upside price target of $84. A trade at $66 will refresh the uptrend.
In this weekly Point and Figure chart of GM, below, the $104 area is our target.
Bottom-line strategy: Ford (F) may be getting a lot of attention for its EV truck but the charts of GM should not be ignored. Traders could go long GM at current levels and on strength above $65.20. $84 and $104 are our price targets. Risk to $57 for now.
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