Fiat Chrysler’s technical analysis
Previously in this series, we explored how Fiat Chrysler’s (FCAU) valuation multiples are trading lower compared to 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 the company’s stock. Now, let’s look at Fiat Chrysler’s important technical price levels ahead of its 4Q16 earnings release.
Key support and resistance
As of January 12, 2017, Fiat Chrysler stock is trading at $9.95. The stock delivered an impressive return. It rose more than 40.0% in the last quarter.
The stock is still trading above its 200-day moving average. It shows underlying bullishness for Fiat Chrysler stock. On January 12, the price approached an all-time high near $11.20. It should continue to act as a stiff resistance.
On the downside, Fiat Chrysler stock should find immediate horizontal support near $8.15. No major support lies next to it before $6.95. Any upward price movement could witness obstruction near a key horizontal resistance at $6.95.
Note that upward stock price movements might see resistance around the resistance levels. Downward price movements might hit a roadblock around the support levels.
Auto industry’s 4Q16
The auto industry’s 4Q16 earnings season is about to start. Fiat Chrysler’s peers (XLY) including General Motors (GM), Ford (F), and Tesla (TSLA) are also set to release their fiscal 2016 results in the next three to four weeks.
Auto investors can stay updated on analysts’ earnings estimates by visiting Market Realist’s Autos page.
Read Your General Motors 2016 Holiday Highlights and Holiday Highlights: All You Need to Know about Ford’s 2016 to learn more about mainstream US automakers’ 2016 highlights.