This Is Why You Should Pay Attention To The 50% Retracement Level
General Motors (GM)
reported a first-quarter net loss of $1.1 billion. According to
Reuters, it was the worst result since 1992. The stock gapped down and
immediately reversed to the upside, but it failed to take out 26.35.
10:11:33 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Sell |
GM | sell stop at 25.74 | pullback | 25.89 | 25.50 | 25.79 |
TK |
Shortly after 9:45, GM formed a
bullish tail and began to pullback on weak volume. As you can see below, buyers
did not have enough energy to break above its 50% Fibonacci level. Notice the
stochastic was also in the overbought level. I placed a sell stop at 25.74.
10:39:28 (from TradersWire)
Follow up on GM (Pt 3)
It has hit our target price. Cover the rest, or re-adjust your stop.
If you have questions, feel free to
mail them to me.