Market Insights

Trump tariffs are back in the news today as the White House threatens duties on European cars. It’s a good time to review the theme because at least two companies impacted by the President’s trade posturing have some interesting chart patterns.

First, General Motors (GM) itself. News of an investment by Japan’s Softbank sent the automaker ripping 13 percent on higher on May 31. That was its biggest rally since the company emerged from bankruptcy in 2010.

GM peaked near $45 early last week and has now edged down to test that recent bullish gap. The stock’s also holding a potential support zone around $41 and its 200-day moving average. Some chart watchers may view that kind of pullback as a potential entry — especially with consumer-discretionary stocks outperforming the S&P 500 by a huge margin in the last month. (GM is a member of that sector.)

General Motors (GM) chart showing bullish gap and 200-day moving average (green).

Next, Cleveland Cliffs (CLF): The iron-ore producer has strong ties to the domestic steel industry, another beneficiary of Trump’s trade measures. It’s had strong earnings, bullish options activity and is considered a turnaround story by analysts.

CLF has made higher lows since late May while pushing resistance around $9, a potential bullish triangle. It’s also on pace for its richest close in over a year.

Cleveland Cliffs (CLF) chart, showing potential bullish triangle.

In conclusion, this isn’t a trade recommendation and everyone needs to do their own homework. But there are some potentially interesting chart patterns popping up.