Fiat Chrysler stock
Last week, Fiat Chrysler stock (FCAU) traded on a weak note and fell about 1.9% to end the week at $10.63. In 2Q17, the company’s Wall Street performance hasn’t been very impressive with a loss of about 2.7%. In the first quarter, FCAU stock rose about 20% and outperformed direct peers General Motors (GM), Ford Motor (F), and Toyota (TM).
In January 2017, the EPA alleged that FCAU might be violating the Clean Air Act by using hidden software in its diesel vehicles. Since then, the company has been surrounded by controversy and is finding it difficult to settle the issues with authorities.
In May, FCAU had sought EPA’s and California Air Resources Board’s permission to update software in the 104,000 affected vehicles. The company believed that this software update could resolve the issue.
According to a Reuters report published on June 14, the U.S. Department of Justice is yet to decide on Fiat Chrysler’s offer to fix the emission issue with a software update. The report also suggests that the authority might take “weeks or months” to decide whether this software update could fix the issue or not. These uncertainties about the emissions issue could be the key reason why FCAU stock remained weak in 2Q17.
Just like its peers GM and Ford, Fiat Chrysler stock also has witnessed mixed movement in the last one month. An immediate support lies at $10.40, and an immediate resistance is near the $10.95 price level.
In the next part, we’ll learn about Tesla’s recent price movement and its important support and resistance levels for this week.