Swing Trade Idea (GM) 01-06-2021
Our bullish trade for Wednesday, January 6th is General Motors (GM). GM is part of the Discretionary Sector (XLY). XLY has experienced a 1.7% gain in the last month and its 1M and 6M trends are both bullish.
GM is on a strong bullish trend and recently pulled back to $40 creating a double bottom. Its 6M trends turned bullish yesterday 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 $40 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 $3.30.
