3 Big Stock Charts for Monday: General Motors, IBM, and Tupperware Brands

Stock Market

After a week of stunning volatility, traders can only hope for a sense of direction in the Dow Jones Industrial Average and other major market indexes. The coronavirus from China will undoubtedly remain top-of-mind for traders and non-traders alike.

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Monday’s big stock charts suggest an easing of selling pressure and a decline in trading volume. Be on the lookout for multiple “sucker’s rallies,” though.

Though today’s big stock charts feature three companies signaling a potential recovery, head-fakes are also a possibility. The equities markets are notorious for apparent breakouts that end up becoming fake-outs.

Let’s take a look at three companies that I like to consider “old standbys.” These stocks make standard products the whole country will still be using while waiting out the pandemic and beyond.

General Motors (GM)

GM stock

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First up in Monday’s big stock charts is old automotive-sector standby General Motors (NYSE:GM). Unfortunately, the company’s coronavirus-induced plant shutdown could last indefinitely as the automaker is “actively monitoring the situation, and possible impact of the crisis on consumer demand.”

  • While the news isn’t particularly encouraging, at least the chart provides traders with a glimpse of hope. It’s uncanny how GM stock bounced right off of that $15 level. Coincidence? You decide.
  • The volume has eased up considerably since the apparent short-term bottom was put in. That’s a positive sign, for what it’s worth. Friday’s spinning top candlestick indicates some indecision among traders. Watch the next few candles closely for directional indications.
  • The support-resistance channel has widened considerably. The lower resistance line only has a couple of data points (i.e., candlestick touches), so it’s not especially strong. However, the upper resistance line has numerous data points. Therefore, traders should sell their GM stock shares if an upcoming candle touches that line.

International Business Machines (IBM)

GM stock

Source: Provided by Finviz

Sticking to the theme of old standbys, International Business Machines (NYSE:IBM) is appropriate for just about any tech-focused portfolio. Regardless of how the coronavirus progresses, it’s hard to imagine IBM not coming through the other side intact. The second of our big stock charts might look scary, but there could be a prime buying opportunity here.

  • Note how the $130 level, formerly support, is now resistance due to the recent price breakdown. Consider $150 the next resistance level if IBM stock breaks through $130 with conviction (i.e., heavy volume).
  • Just like with GM stock, we’re seeing a widening support-resistance channel with IBM stock. It’s not quite a megaphone pattern because we’re not seeing the characteristic higher highs and lower lows. Really it’s just a decent bounce after a sell-off, though the volume is diminishing.
  • Friday’s shooting star candlestick isn’t exactly what the bulls wanted to see. A small body, red color, with an upper wick but almost no lower wick – this could spell trouble, so caution is definitely advised.

Tupperware Brands (TUP)

TUP stock

Source: Provided by Finviz

Here’s one that you might never have traded but ought to consider: Tupperware Brands (NYSE:TUP). TUP stock could do well if food storage becomes a necessity during the coronavirus crisis. Can we lock in some freshness and flavor (and profits) with the price chart this week? Let’s take a look.

  • The multi-month falling wedge pattern has clearly been invalidated with the recent price breakdown. The trading volume has been anemic lately. But at least the stock is moving sideways now. Sideways is better than down, right?
  • On the other hand, “sideways” is a relative term. The TUP stock price took a near $8 haircut on Friday. The entire chart looks like it’s falling down a series of stair steps. Even before the coronavirus crisis, all rallies were being relentlessly sold off.
  • Do you really want to be a hero and take a chance with TUP stock? That would be reckless at this juncture. $17 was the resistance level to watch last year, but even breaking through $4 will be a struggle now. Avoid, please!

As of this writing, David Moadel did not hold a position in any of the aforementioned securities.

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