GM is moving up sharply from a mult-decade low with very heavy volume. Company president has stated that GM has "seen the worst." With the price of oil collapsing, GM's product line will become more attractive to consumers as the worry about the cost of gasoline begins to dissapate. Stock should continue to move up from here to test initial resistance at 15. If volume continues to be strong, that resistance should be easily penetrated. Next resistance is in the 24 - 26 range. If oil prices continue to abate and stabilize at lower levels, sales of trucks and SUV's should experience a mild recovery. With the plans to increase production of higher mileage vehicles, sales should improve dramatically over the next year. GM should retest highs around 40.
$10.9618 (08/11/08)
