GM Soars 8.67% On Bullish Reversal With Highest Volume In 3 Weeks

General Motors (GM) closed at $53.13, surging 8.67% on July 23, 2025, accompanied by above-average volume of 25.6 million shares. This sharp rebound followed an 8.12% decline to $48.89 the previous day, creating a notable candlestick reversal pattern.
Candlestick Theory
The bullish engulfing pattern formed by the July 22-23 sessions signals strong reversal potential, with the latter’s body fully eclipsing the prior day’s decline. This action establishes $48.87–$48.89 as immediate support, validated by the July 22 low. Resistance emerges near $53.70–$53.89, aligning with July’s consolidation ceiling and the late-June swing high. The recovery above $50 psychological barrier confirms buyer conviction.
Moving Average Theory
The 50-day moving average (MA) near $50.20 provides dynamic support, while the 100-day and 200-day MAs converge at $49.30–$49.50, reinforcing this zone as a strategic basing area. The price remains above all three key MAs, confirming the broader uptrend. However, a sustained move above the 50-day MA is necessary to negate the recent pullback’s momentum.
MACD & KDJ Indicators
MACD shows a bullish crossover in negative territory, indicating waning downward momentum. The histogram’s contraction supports this reversal signal. KDJ registers an oversold bounce with the %K line (currently 25) crossing above %D (20), though both remain below the 50 midline, suggesting nascent recovery potential rather than established strength.
Bollinger Bands
Volatility expansion is evident as prices breached the lower band on July 22 before snapping back toward the 20-period midline ($51.60). Band width remains elevated, reflecting persistent instability. A close above the midline would signal regained bullish control, while rejection near $53.90 (upper band) may invite consolidation.
Volume-Price Relationship
The 8.67% surge on July 23 occurred alongside the highest volume in three weeks, validating bullish conviction. This contrasts with the July 22 sell-off’s 33.8 million shares, suggesting capitulation. Sustained volume above the 20-day average (9–10 million shares) will be critical for continuation.
Relative Strength Index (RSI)
RSI(14) rebounded sharply from 35 (nearing oversold) to 58, neutralizing immediate downside risk. While not yet overbought, its recovery trajectory aligns with the engulfing candle. A move above 60 would reinforce bullish momentum, though traders should note RSI’s tendency to provide false signals during volatile rebounds.
Fibonacci Retracement
The advance from $48.13 (June 25 low) to $53.89 (July 17 high) establishes key retracement levels. The July 22 low ($48.87) precisely tested the 76.4% retracement ($48.85), showcasing Fibonacci’s relevance. Current resistance resides at the 38.2% level ($51.80) and 23.6% level ($53.00). A close above $53.00 opens the path toward $53.89.
Confluence and Divergence
Confluence exists between Fibonacci support ($48.85), the 100/200-day MA cluster ($49.30–$49.50), and the July 22 low ($48.87), establishing a high-probability reversal zone. Divergence appears in KDJ’s slower recovery versus RSI/MACD, reflecting lingering momentum caution despite price strength. The engulfing candle’s validation by volume and Fibonacci levels offers a robust bullish signal.
In summary, GM exhibits technical recovery signs after testing critical supports, with bullish confirmation requiring consolidation above $51.80 and ideally a decisive breach of $53.00. Traders should monitor volume patterns and RSI/KDJ convergence for trend sustainability cues. The confluence of Fibonacci, moving averages, and candlestick reversal patterns suggests a favorable risk-reward profile for tactical longs, provided $48.85 support holds.