General Motors, the world’s largest automaker, is poised to stage a rebound after an inverted head-and-shoulders pattern appeared recently. Here’s why.
An inverted head-and-shoulders pattern is bullish in the immediate term. Measuring the distance from the low of the “head” to the neck line, as shown in the chart below, I expect General Motors to rally to around $37.
This is confirmed by two pivot points of similar price range on 2007—02-14 and 2007-06-29.
Our own market psychology barometer reading also showed a bullish divergence in the current inverted right shoulder.
read more
$23.67 (03/03/08)
