General Motors plummets

The tariffs on steel and aluminum by the US has started to affect the outlook for the futures earnings of General Motors and possibly other US car manufacturers. Even though GM has reported earnings above expectations for the second quarter, its revenue has fallen and that causes the price of its stock to plummet during today´s session. The price of GM has been falling from the high that it made at the 44.94 level during last month and reaches the 55 and 200 day EMAs zona where it consolidates. After consolidating above the 38.68 level for around 15 trading sessions, the stock makes a bearish gap and drops to the 36.51 level. Another factor that has been eating into GM’s revenue and sales is the fact that the US Dollar has risen considerably versus the Argentine Peso and the Brazilian Real, causing GM’s cars to be more expensive in those countries, causing demand to drop. In case of continuing lower, the price of GM may find some support around the low at the 35.25 level. To the upside, the 38.68 level may change to resistance in case the price pulls back to that zone.