Chart of the day

Where do we stand fundamentally?

GM is preparing to accelerate its electric vehicle (EV) production as it gears up for the "next cycle" of EV growth. This includes scaling up production of models like the Chevrolet Equinox EV and launching new electric vehicles (EVs) under the GMC and Cadillac brands. The company delivered around 22,000 EVs in Q2 2024, a 34% increase from the previous quarter. Despite challenges like delays in launching new EVs and scaling back production targets due to weaker-than-expected demand, GM remains committed to achieving profitability in its EV sector by the end of 2024​. Unfortunately, not all the news is positive. GM is laying off over 250 part-time workers at its Fort Wayne Assembly plant in Indiana. The layoffs are reportedly due to a reduction in demand for full-size trucks produced at the plant​

GM is retesting the 44 resistance. A bounce off this support will confirm the bull flag breakout for an extension higher in the third long-term wave. Invalidation of this immediate upside extension could come upon a break below 40.

An invalidation level of a third-wave long-term extension higher and a bullish cycle continuation is 30. As said this extension higher could lead to a 70 target in the medium-term to long-term if the GM holds the gains above 44.

_{Try a long trade entry with a narrow stop loss below 38 to target 65 and higher.}