After many years of turmoil in the auto industry, emerging from bankruptcy and reissuing new stock in mid November '10; General Motors (GM) could be a buy candidate for the longer term.
These are some of the interesting signs:
1. Early developing chart with a possible upside-down head and shoulders pattern.
2. Recent break up above the 50 dma.
3. Price support at about 28.60, limiting the downside exposure.
4. Excellent average daily volume of about 14.3 million shares.
5. Estimated earnings continuing to climb.
6. Forward P/E ratio is estimated around the low 6's.
7. Number of funds owning GM has increased over the last 3 quarters.
8. Price well under the recent IPO (33.00).
9. A public push to "buy American".
Trading at this time at 30.84, GM is worth keeping an eye on.