What Technicals Suggest for FCAU Stock before Its 1Q17 Results
FCAU’s technical analysis
Previously in this series, we saw how Fiat Chrysler Automobiles’s (FCAU) valuation multiples are trading lower than its closest peers. While valuation multiples can help investors, it’s also important for investors to look at key technical support and resistance areas.
Investors can use these support and resistance areas to refine their entry and exit from a company’s stock. Now, let’s look at FCAU’s important technical price levels ahead of its 1Q17 earnings release.
Interested in FCAU? Don't miss the next report.
Receive e-mail alerts for new research on FCAU
Key technical levels
On April 19, 2017, FCAU stock traded at $9.97. The stock has risen about 6.8% in fiscal 2017 year-to-date.
Despite early April declines, its stock is hovering well above its 200-day SMA (simple moving average), which reflects underlying bullishness for FCAU stock. On February 15, 2017, the price posted a fresh all-time high level near $11.63, which should act as a stiff resistance for the medium term. An immediate resistance level lies near $10.60. On the downside, no key horizontal support area is seen above the $9.15 price level in Fiat Chrysler stock.
Note that upward stock price movements may see pressure around the resistance levels, and downward price movements may hit a roadblock around support levels.
Auto industry’s 1Q17 earnings
The US auto industry’s (XLY) 1Q17 earnings season has already begun with Harley-Davidson (HOG), which reported its dismal 1Q17 earnings results on April 18. Please read Harley-Davidson’s 1Q17 Results: Tough Times Ahead? to learn more.
FCAU’s direct US peers General Motors (GM) and Ford (F) are set to release their 1Q17 earnings results in the final week of April.
Auto industry investors can stay updated about analysts’ estimates for these earnings by visiting Market Realist’s Auto page.