Ford Motor Co (NYSE: F) and General Motors Company (NYSE: GM) have both formed long-term bullish chart patterns that could provide massive upside for the long-minded trader and investor.

Ford Motor Co (NYSE:F) and General Motors Company (NYSE:GM) have both formed long-term bullish chart patterns that could provide massive upside for the long-minded trader and investor.

On Friday, Ford broke up from a weekly bull flag pattern Benzinga called out prior to the break. eneral Motors looks poised for a blue-sky run because the stock is trading in a confirmed weekly uptrend.

On Monday, both Ford and General Motors were consolidating with bullish inside bar patterns on the daily chart, partly due to a pullback in the general markets.

It should be noted that events such as the general markets turning bearish, negative reactions to earnings prints and negative news headlines about a stock can quickly invalidate bullish patterns and breakouts.

As the saying goes, "the trend is your friend until it isn't," and any trader in a bullish position should have a clear stop set in place and manage their risk versus reward.

Both legacy automakers have been ramping up their electric vehicle production efforts to meet growing electric vehicle demand. General Motors is reportedly planning to invest more than $3 billion to upgrade Detroit-based Orion Assembly manufacturing plant, and on Friday, Ford CEO Jim Farley announced on Twitter the company plans to triple the production of its Mustang Mach-Es next year.

See Also: Tesla Cybertruck Can Be Wrapped In Any Color That's Not 'Nothing,' Says Elon Musk, Invoking Henry Ford

The Ford Chart: Ford surged to decade highs on Nov. 4 before entering into a monthlong period of sideways consolidation. On Friday, the stock broke through resistance at the $20.51 level on higher-than-average bullish volume.

  • Ford’s inside bar leans bullish because the stock was trading higher before printing the pattern.
  • If the inside bar pattern doesn’t break Monday or Tuesday, Ford may consolidate the bull run by settling into a bull flag pattern on the daily chart.
  • There is a gap on the daily chart bullish traders should be aware of between $15.92 and $16.55, as it is likely Ford will trade down into the range in the future, although it could be an extended amount of time before that occurs.
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f_dec._13.pngThe General Motors Chart: General Motors reversed course into a strong weekly uptrend on Aug. 23 after hitting a support level near the $47 mark and bouncing up from it.

  • The stock’s most recent weekly higher low was printed the week of Nov. 29 at the $57.44 level, and the most recent higher high was created the week of Nov. 15 at $65.18.
  • To continue in the uptrend, General Motors will need to hold above the Nov. 30 low-of-day.
  • If General Motors fails to print a higher high in blue skies over the coming weeks, the stock may form into a bullish pennant pattern and begin making a series of lower highs and higher lows.gm_dec._13.png