Swing Trade Idea – (GM) – 12-04-2020
Our bullish trade for Friday, December 5th is General Motors (GM). GM is part of the Discretionary Sector (XLY). XLY has experienced a 7.3% gain in the last month and its 1M and 6M trends turned bullish early November.
GM is on a strong bullish trend and recently pulled back to its 21 D EMA. Its 1M and 6M trends turned bullish in early Noveber and with a technical score of 9 (out of 10), GM is a very strong stock that will likely move higher.
As a stop loss, if GM were to trade below $42 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $3.48.
