GM... Classic Pattern Setting Up To Short
Gm is setting up for a classic pattern to short. Notice the sharp downmove GM had with good volume. Now the stock is consolidating in a tight range at the lower end of this move. Note the light volume during this consolidation..Keep an eye on this stock for a possible short.
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2 comments:
Let me ask a question - what effect does the fact that the good volume down draft recently seen was a direct result of Kirk Kerkorian off-loading his entire position (about 17% of total)?
It occurs to me that GM could go either way out of that flag. Maybe not - I don't know. On the weekly charts it printed a dummy spot this past week and you can see it clearly making higher lows. Taking that coupled with that high volume blow-off a couple of weeks ago and I still think it could go either way.
I think that there are a lot of stocks out there to game on the short side (RIMM looks ripe and if RIMM goes PALM, already weak, follows) that I'd leave GM alone.
You're right, GM could go either way just like anything..However GM is not bouncing from the sharp selloff that we had last week..If it breaks down I'll short it...I'm not going to argue with the stock. If it starts to go higher, I won't do anything because the momentum is to the downside..I keep this simple and try not to think to hard...
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