Looking at General Motors (GM) on the weekly timeframe, the stock has been in a very clean impulsive move since the March 2020 lows of 14.33.
The Big Picture:
The Current Setup (The Blue Box):
Right now, we are in Wave (4). This is a corrective phase. Have marked a Blue Box as main entry zone.
Why the Blue Box?
The Game Plan:
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
The Big Picture:
- Wave 1 & 2: The first big move ended at 67.21. After that, we saw a very deep Wave 2 correction which almost touched the 0.786 Fibonacci level at 26.30.
- Wave 3 Launch: From those lows, the third wave started. Inside this, we have already finished sub-waves (1) at 61.24, (2) at 41.60, and (3) at 87.62.
- RSI Check: At the 87.62 peak, the RSI was heavily overbought. Now it is cooling down , which is exactly what we want to see for a healthy correction.
The Current Setup (The Blue Box):
Right now, we are in Wave (4). This is a corrective phase. Have marked a Blue Box as main entry zone.
Why the Blue Box?
- Support Confluence: This area aligns with the previous Wave 1 high (67.21) and should act as a new support. Or the price might even retest this previous high before going higher. So this becomes a major support to watch.
- Fibonacci Levels: This box also matches the 0.382 to 0.5 retracement of the previous move.
- Wait and Watch: Wave (4) can be a bit slow. It might morph into a Triangle if not a Flat or Zigzag consolidation. It should basically gather momentum here for the final launch.
The Game Plan:
- Entry Zone: Around the 65–70 levels (Blue Box).
- Target: Once Wave (4) is finished, we expect Wave (5) to launch and take the price well above 87.62.
- Invalidation:If the price drops and closes below 61.24, then this count is invalidated because Wave 4 cannot overlap with Wave 1.
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
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WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.