GM is currently bouncing off support. Based on MFI (14), GM dropped below the 20 mark, indicating a strong oversold situation. The only other time within a one-year timespan it has dropped below the MFI (14) was in mid October, the stock price ran from $33 to $41 after that point. Furthermore, OBV has dropped to mid-May levels, which was the the beginning of the long run from $31 to $41. All indications leads to my opinion that GM is currently very oversold and may be a good opportunity to buy at the bottom.
What to look out for, to further support my opinion:
If you see further churning at these levels, where prices continues to bounce off the $36 support, MFI making a reversal above the 20, and small reversal on the OBV THEN this IMHO will be a fantastic opportunity to buy at current prices.
What to look out for, to further support my opinion:
If you see further churning at these levels, where prices continues to bounce off the $36 support, MFI making a reversal above the 20, and small reversal on the OBV THEN this IMHO will be a fantastic opportunity to buy at current prices.