Stock of the day: General Motors

General Motors is currently sitting at a technical crossroads, just one step away from generating a major trading signal. The recent price action is forming a flag pattern, outlined by black trendlines, which typically acts as a bearish correction within a broader bullish trend.

What adds a layer of complexity—and opportunity—is the inverse head and shoulders formation developing inside the flag, highlighted with an orange rectangle. This reversal pattern suggests potential bullish momentum is building.

The neckline of the inverse head and shoulders, marked in red, has already been broken, triggering the early stages of a buy signal. However, for that signal to be confirmed, we need to see a strong daily close above the upper boundary of the flag. The close from yesterday was tentative and lacked conviction, so a clear breakout above the black trendline will be critical to confirm the bullish scenario.

On the flip side, if the price drops back below the red neckline, that would invalidate the bullish setup and trigger a signal to go short.

In short, General Motors is coiled for a decisive move, and the next daily candle could tell us everything we need to know about the near-term direction.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-general-motors-3