Shares of General Motors (GM - Get Report) are taking it on the chin Monday, down more than 4% to $37.23 in midday trading.

The surge in oil prices isn't what's weighing on GM. Instead, it's news of a nationwide strike hurting the stock. That's too bad, as GM stock was consolidating in a very nice range this month, with a run to its 2019 highs looking likely.

Instead, the stock is gapping lower and knifing through support. Investors are hoping that buyers step in to stop the bleeding, but with auto stocks, that can be a hard sell.

Nearly 50,000 United Auto Worker members went on strike at midnight. The move shuts down 33 production plants and 22 distribution warehouses until things get sorted out.

Well-known auto analyst Adam Jonas of JPMorgan says to buy the dip in GM, as it costs the company roughly 3 cents in earnings per share each day the strike persists. However, the automaker can offset some of these losses with inventory management and price changes.

Let's look at the charts.

Trading General Motors Stock

Daily chart of General Motors stock.
Daily chart of General Motors stock.

While GM stock is down 4.2% on the news, Ford (F - Get Report) is down just 1% on the day, while Fiat Chrysler (FCAU - Get Report) is falling less than 40 basis points. We took a closer look at Ford last week after its credit rating was downgraded.

As for General Motors stock, investors can see the marvelous run it went on from late August to early September. Shares ran from a low of $35.23 -- bouncing hard off uptrend support (blue line) -- to a high of $39.78 in just eight trading sessions.

Bulls were consolidating the ~13% rally quite well, as GM stock chopped sideways for more than a week before Monday's plunge.

Should shares of General Motors stock end the session below $37.50, it will have knifed through the 20-day and 50-day moving averages as well as the 38.2% retracement.

From here, there are only two paths (as is always the case). Either General Motors stock rallies from here or continues to fall. If it's the former, let's see if GM can reclaim the 38.2% retracement and the 50-day moving average. Above both puts its prior consolidation range and $39.50 range resistance on the table.

If it's the latter and General Motors stock continues to fall, see if the 200-day moving average near $37 buoys the name. If not, the 50% retracement and uptrend support may be in the cards. 

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.