Can GM stock test the 2011 lows and hold?
Back in May, I noted in the article, Price dynamics show GM stock turning more bearish. Well, that now seems to be an accurate forecast, as General Motors Company (NYSE: GM) stock is once again testing the mettle of its owners as it heads toward testing its all-time low since its IPO.
Looking at the weekly chart, especially note the lows of October and December of 2011. At 19.05 and 19.00 respectively, this clearly defines a double bottom. Question now is, will GM stock produce a triple bottom? Furthermore, will that bottom hold or fail?
For those who thought the announcement that a buyout of many salaried retirees would make a difference, that is either wrong or the reaction is delayed. For sure, GM will pay a price as many retirees have vowed never to buy another GM product; the direct result for the company’s lack of loyalty. Read: GM may suffer future sales backlash from thousands of retirees
My own proprietary buy-sell indicator, though, clearly shown by the B and S designations, tells us the technical signals are accurate. Note how the trend bias since February has been bearish; and rightly so.