General Motors(GM) stock has been doing great since August, when it started rising from 24.70. Currently above 36.00, the stock is getting more and more attractive. However, investors might want to wait a while before jumping in. The chart below explains why.
According to the Elliott Wave Principle, every five-wave impulse like the one shown above, is followed by a three-wave correction in the other direction. General Motors’ impulsive sequence seems to either over or near completion. So, instead of buying right here and now, we prefer waiting for the retracement. It is all about timing.
