General Motors (GM) shares are likeꦇly to remain in the spotlight after tumbling Thursday amid concerns about the potential impact of the Trump administration’s newly announced tariffs on auto imports.

The drop in GM’s stock, along with 澳洲幸运5官方开奖结果体彩网:declines for other leꦿading car manufacturers and parts suppliers, followed President Donald Trump's 澳洲幸运5官方开奖结果体彩网:announcement late Wednesday that 25% tariffs would be imposed on all foreign-made cars and auto parts. GM’s stock was particularly hard hit because of the number of vehicles it imports, with significant exposure to markets in Mexico and South Korea.

GM shares led S&P 500 decliners on Thursday, falling more than 7% to $47.20. The stock is down more than 20% from its 澳洲幸运5官方开奖结果体彩网:52-week high set in late November.

Below, we take a closer look at GM’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify important price levels that investorsඣ may be monitor♉ing.

Bearish Engulfing Pattern Emerges

GM shares have remained under pressure since breaking down below the neckline of a 澳洲幸运5官方开奖结果体彩网:head and shoulders formation in late January.

More recently, a 澳洲幸运5官方开奖结果体彩网:bearish engulfing pattern emerged on the chart following a short-lived upswing that preceded today’s drop on above-average volume. It’s also worth pointing out that the 澳洲幸运5官方开奖结果体彩网:50-day moving average (MA) recently crossed below the 200-day MA to form a 澳洲幸运5官方开奖结果体彩网:death cross, a chart indicator warning of lower prices.

Let’s identify two important 澳洲幸运5官方开奖结果体彩网:support levels to monitor given the stock’s weak technical outlook and also locate ඣkey overhead areas worth watching during potential recovery efforts.

Important Support Levels to Monitor

Further share price weakness could initially see a move down to around $45. The shares may attract buying interest in this area near a 澳洲幸运5官方开奖结果体彩网:horizontal line that connects a range of 澳洲幸运5官方开奖结果体彩网:peaks and troughs on the chart extend෴i🎃ng back to mid-July last year.

A decisive close below this level sets the stage for a possible drop to $40. Investors may seek to 澳洲幸运5官方开奖结果体彩网:accumulate shares in this region near last year’s prominent early-August 澳洲幸运5官方开奖结果体彩网:swing low, which also aligns with🌟 a series of similar prices on the chart throughout the first quarter of 2024.

Key Overhead Areas Worth Watching

During recovery efforts in the stock, it’s worth keeping track of how the price responds to the 澳洲幸运5官方开奖结果体彩网:psychological $50 area. The shares could face 澳洲幸运5官方开奖结果体彩网:resistance at this level ﷽near the July, August, and September peaks that sit alongside troughs that formed on the c🔥hart in December and January.

Finally, buying above this area opens the door for a rally to around $55. Investors who have bought GM shares at lower levels could seek 澳洲幸运5官方开奖结果体彩网:exit points in this location on a retest of the head and shoulders forܫmation’s two shoulders.

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