General Motors stocks testing the top of Pitchfork channel
In this article, we are drawing Pitchfork channels for General Motors stocks (GM)
On the Weekly GM chart, we can see that the instrument is in the downside Pitchfork channel and it is reaching the confluence of the resistance after a bounce from 33 level. The confluence of resistance is also downside support and for a downside continuation, GM should stay below 39.
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Summer trading boot camp 2019 5 best students will get $10.000 Live funded account to tradeUsing Andrews Pitchfork tool hint: to plot Andrew’s Pitchfork on a chart, first, look for three consecutive big highs or lows at the asset’s price. These key points are highlighted in the chart below.
We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets indicated below.
On the Daily chart, the instrument formed a new uptrend Pitchfork channel which could lead to a test of 40 Median level if we get a break above the 38.50. By a trading perspective, look for the short trade entries with the stop loss above 39 to target 34.60l. Downside invalidation will come on a stop loss trigger and a daily close above the 40 level. Look for a 36.50 target especially in the case of a break below the 38.30 level.
Happy trading! (click on the chart to enlarge it)