Last week, I noticed the patterns unfolding in Ford (F) and General Motors (GM). With regard to Ford, I noted that the current outlook could press the stock into the 15.20-14.80 buy window, ahead of a powerful rally that should propel Ford through key resistance at 16.00-16.50 on the way to 18.00.

While Ford proceeded to move as I anticipated, GM exhibits a more powerful near-term technical setup. I noted that the current rally should run to around 33.00 prior to a pullback that will be the buying opportunity for the remainder of 2011. That "buy window" projects into the 31.60/20 prior to the anticipated powerful upleg towards 36-plus.

With today's spikedown to 31.49, followed by a strong $1.00 recovery, the optimal pattern in GM appears to be in progress so far.

 

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