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Fiat Chrysler Stock Rose despite Lower US Sales

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Fiat Chrysler 

So far in this series, we looked at recent updates and stock performance for Tesla (TSLA), General Motors (GM), and Ford (F). As of March 3, Fiat Chrysler stock rose ~23.0% on a YTD (year-to-date) basis. Last week, the stock continued to rise and posted 4.0% weekly gains.

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US sales fell sharply

In February, Fiat Chrysler sold ~168,326 vehicles units in the US market. The sales figures represent a sharp fall of ~10% from the same month last year.

On the positive side, Ram truck sales rose 4% YoY (year-over-year) in February 2017. Similarly, the sales of Fiat Chrysler’s Alfa Romeo luxury vehicles rose significantly last month to 443 vehicle units from just 47 units sold in February last year.

Note that trucks and premium luxury vehicles usually yield higher profit margins for automakers (XLY) compared to small cars. It could be the primary reason for optimism in Fiat Chrysler stock last week.

Key technical levels

Last month, Fiat Chrysler stock posted a fresh all-time high near $11.63. As of March 3, its stock is trading at $11.22. Technically, the underlying momentum is still strong. Its $11.63 price level should continue to act as an important resistance this week.

On the downside, major horizontal support lies near $10.20. A violation of this support level could trigger an additional sell-off in the stock in the near term.

Read Fiat Chrysler’s 4Q16 Results: Coasting Toward 2018 Targets? to learn more.

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