Today’s Trade 11-04-11

A couple of days ago, GM came down to a 50% Fibonacci retracement level on decent volume. Thursday’s trading activity finished with a large hammer formation which would normally make for a very appealing trade setup for me. However, this hammer is not at the bottom of the pullback. it actually finished up a little to high to really peak my interest and have the major upside potential. That said, there is definitley some upside potential on a break of the hammer.

Here is how the trade sets up:

— Long Above: $24.20
— Stop: $23.50
— Target: $26.50