General Motors Surges 3.93% as Bullish Indicators Signal Potential Breakout to $85.18 Amid Key Support/Resistance Levels

General Motors (GM) Technical Analysis

Candlestick Theory

General Motors' recent 3.93% surge to $85.13 forms a strong bullish candle with a long upper wick, suggesting aggressive buying pressure. Key support levels emerge at $81.32 (Dec 31 low) and $75.29 (Dec 5 low), with the latter acting as a psychological floor after a sharp 14.86% rebound in late October 2025. Resistance is clustered near $83.03 (Dec 22 high) and $85.18 (Jan 8 high). A break above $85.18 could target $87.00, while a retest of $81.32 may trigger a short-term pullback.

Moving Average Theory

The 50-day MA (approx. $80.50) and 200-day MA (approx. $78.00) currently trend upward, confirming a medium-term bullish bias. Short-term momentum is reinforced by the 100-day MA (approx. $81.00), which GM has held above since mid-December. However, the 200-day MA’s slope has flattened recently, suggesting potential consolidation. If the price dips below the 50-day MA, it may signal weakening momentum, but the broader uptrend remains intact as long as $75.29 holds.

MACD & KDJ Indicators

The MACD histogram has turned positive, with the line crossing above the signal line in early January, indicating strengthening bullish momentum. The KDJ indicator shows %K (35.7) crossing above %D (30.2), suggesting a potential short-term rally. However, RSI at 62 (not yet overbought) and MACD’s divergence from price action in late December caution against overreliance on momentum. A bearish KDJ crossover below 50 could signal a correction if volume wanes.

Bollinger Bands

Volatility has expanded recently, with GM trading near the upper band at $85.13, reflecting heightened buying pressure. The 20-day BB width has widened by 25% from mid-December, suggesting a potential consolidation phase ahead. A pullback to the middle band ($83.00) may find support, while a break below the lower band ($80.00) would invalidate the near-term bullish case.

Volume-Price Relationship

Surging volume on the Jan 8 rally (11.6M shares) validates the move above $85.00, with volume exceeding the 90-day average by 35%. However, declining volume on subsequent sessions (e.g., 6.4M on Jan 7) suggests weakening follow-through. A sustained volume spike above 12M shares would reinforce the breakout, while shrinking volume could indicate distribution by short-term traders.

Relative Strength Index (RSI)

RSI has climbed to 62, indicating strong momentum but not yet overbought territory. A close above 70 would signal overbought conditions, potentially triggering profit-taking. Conversely, a drop below 50 would suggest a shift in sentiment. The RSI’s alignment with price action since late December suggests buyers remain in control, but caution is warranted if the indicator forms bearish divergences.

Fibonacci Retracement

Key Fibonacci levels from the Dec 5 low ($75.29) to the Jan 8 high ($85.13) include 61.8% at $79.70 and 78.6% at $82.40. The price has tested $82.40 twice (Jan 6 and Jan 2), with a successful hold above this level likely to target $85.13. A breakdown below $79.70 would invalidate the Fibonacci projection and suggest a deeper correction toward $75.29.

Confluence & Divergences
The most compelling confluence occurs at $83.00, where the 20-day SMA, Bollinger middle band, and 78.6% Fibonacci level align as a critical support/resistance zone. If GM clears $85.13 with rising volume, it would confirm a bullish breakout. However, divergences between MACD and price action in late December, coupled with RSI’s lack of overbought readings, suggest the rally may lack sustainability without a surge in volume. A breakdown below $81.32 would trigger Fibonacci retracements and challenge the 50-day MA’s validity.

Probabilistic Outlook

The bias remains bullish in the near term, with a 65–70% probability of testing $85.13–$87.00 if volume remains robust. However, a 30–35% risk of a pullback to $80.00–$79.70 exists if short-term traders take profits. Long-term holders should monitor the 200-day MA for signs of a trend reversal.