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Swing Trade Idea (GM) – February 01, 2022

Our bullish trade for Tuesday, February 1st is General Motors Company (GM). GM is part of the Discretionary sector that has recently found support at a key level and improved by 1.29% over the last week. 

GM recently found support at a key level of $50, and respected this level on the retest which provides a good risk/reward bullish entry. The 1M trend is expected to turn bullish as the price moves above the next resistance level. 

As a close, if GM were to trade below $48 for multiple days, this would invalidate our analysis and focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $3.32.