GM: Breakdown from long-term wedge GM is breaking down from a massive long term wedge which bode ill for the stock. In the immediate time horizon, would expect GM to shoot for a downside ABCD completion at $32.40, -8%. Would reassess at that point for any bounce/retest of the wedge support. It is amazing to note how much US auto sales have declined from 12 months ago when it peaked at 18.5mn SAAR. As of end Aug, US car sales stands at 16.6mn SAAR. Throw in some cost increase from the new NAFTA bill (requiring workers to be paid $16/hr) and perhaps some Chinese boycott of GM/Buick to thank Trump for all the tariff love. Lots of reasons to hate US auto now.
P.S. If you think this is a pure GM play, you are wrong. F is stuck in a perpetual death spiral with immediate ABCD completion target of c.$8.70, c.-8%.
