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CHART ANALYSIS  |  May 10, 2002
Early Hints at General Motors' Weakness
Multiple negative divergences are often an early sign of trouble ahead. Some are starting to appear for GM and traders should watch for additional confirming weakness via price action and pattern violation.
The indicators and volume show that despite the positive price action where prices challenge recent highs, there is no bullish confirmation from them. Negative divergence occurs when these indicators have flat or opposite sloping trendlines.
by Gary Grosschadl

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