Previously in this series, we explored how Fiat Chrysler’s (FCAU) valuation multiples are trading lower than its closest peers (XLY). While valuation multiples can help investors, it’s also important to look at key technical support and resistance areas.
You can use support and resistance areas to refine your entry and exit from FCAU stock. Now let’s look at the company’s important technical price levels after its 4Q16 results.
Technical outlook for Fiat Chrysler
As of January 26, 2017, Fiat Chrysler stock was trading at $11.06. So far this year, it has delivered an impressive return of more than 21.3%.
The stock is trading much higher than its 200-day moving average, which is hovering near $7.35. That shows an underlying bullishness for FCAU stock.
The price turned mixed after approaching an all-time high near $11.20 on January 12, 2017, which should continue to act as a stiff resistance going forward. Any upward price movement could witness obstruction near this resistance. A breach above this level should attract fresh buying in the stock.
On the downside, FCAU stock should find immediate horizontal support near $9.50. No major support lies next to it before $8.35.
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 earnings
Ford (F), the second-largest US automaker, also released its 4Q16 earnings on January 26, 2017. Harley-Davidson (HOG) and General Motors (GM) are expected to release their 4Q16 earnings on January 31, 2017, and February 7, 2017, respectively.
You can stay updated on these earnings estimates and highlights by visiting Market Realist’s Autos page.