So far today, General Motors (GM) has managed to hold onto the bulk of its 80-cent, 2.4 percent upside reversal from Friday, which could be a very bullish signal that a significant and successful retest low was established at 33.20 (against the November 29 low at 33.07).

From a pattern perspective, all of the action off of Friday's high at 34.00 has the look of a high-level consolidation, which if accurate argues for a thrust to the upside in the upcoming hours that should propel GM to 34.40 next.

At this juncture, only a decline that breaks and sustains beneath 33.60 will compromise the bullish look of the upleg off of Friday's low.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.