While all of the major stock indexes rallied on Tuesday we all know that they're currently short-term oversold off the recent sell off from a failed trade deal with China. One stock that is participating in the rally, though, is General Motors (NYSE:GM). This stock has been declining since April 18, 2019 when it traded as high as $40.45 a share. GM stock tagged its important 200-day moving average on Monday at around $36.50. On Tuesday that important support level was defended and the stock rebounded higher, trading up to $37.22 a share. While GM could trade a bit higher this week, it's important to note that if the current U.S.-China trade deal runs into further headwinds, more downside is imminent.
Price Watch
Ultimately, I would get interested in GM stock around the $32 level. Indeed that's a spot on the chart where the stock was defended in January 2019 and will likely be defended again when tested. 