SIA Chartsā relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis.
In the April 24th edition of the Daily Stock Report, we identified General Motors as a stock which has been steadily moving up the ranks in the SIA S&P 100 Index report, climbing up from near rock bottom at the end of last year, up out of the red zone, through the yellow zone and back up into the Green Favored Zone for the first time since early 2022.
Between then and now, the shares dipped slightly back into the yellow zone but they have started to climb once again, moving up 6 spots in the last week to 24th place. In the last week, GM has gained 4.27% versus a 1.86% gain for the S&P 100 Index.
Candlestick Chart Breaks Out Again. A major breakout is underway in General Motors (GM) shares this week. After selling off in the first half of 2022, GM spent nearly 18 months base-building in the $30.00 to $42.50 range. Late last year, the shares broke down briefly in a final shakeout, and then came under renewed accumulation at the start of this year.
For the last several months, the shares have been under renewed accumulation, establishing a new uptrend of higher lows and holding above the 10-week moving average, its launch pad for this weeks move. In late March, the shares broke out over $42.50 and then paused to digest their gains. This weekās breakout over $46.00, a key support/resistance level, signals that a new upleg has started.
Measured moves suggest the potential for resistance near $55.00, then $62.00, which coincides with a retest of the 2002 peak. Initial support appears at the 10-week average near $44.85.
Point and Figure Chart Catapults Upward. General Motors (GM) has been under renewed accumulation since November of 2023. For over six months, the shares have been steadily climbing, completing multiple bullish patterns and snapping a downtrend line. A recent correction was contained at a 3-box reversal and since then, the shares have launched upward again, rallying to their highest level in over two years, completing a bullish Double Top and a Bullish Catapult.
Based on vertical counts, upside resistance may emerge near $51.40 or $54.55, followed by $61.45 which is based on a horizontal count. Initial support appears near $43.85 based on a 3-box reversal.
With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 9 out of 10, GSY.TO is exhibiting short-term strength across the asset classes.
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