Fiat Chrysler stock
In the week ended July 7, 2017, Fiat Chrysler stock (FCAU) turned positive and rose about 4.8% to end the week at $11.09. In 2Q17, the company’s Wall Street performance was disappointing with a loss of 2.7% during the quarter.
Possible reasons for recent optimism
In June, FCAU reported a 7% fall in its US sales to 187,348 vehicle units. The company’s fleet sales witnessed a massive drop of about 15%, while its retail sales fell 5%. The massive drop in fleet sales could help the company focus on more profitable retail sales, which could be why its stock turned positive last week. Also, Fiat Chrysler’s June sales in Italy, its home market, rose sharply by 12.5%, which added to the optimism.
In January, 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 finding it difficult to settle issues with the EPA and the US Department of Justice.
These uncertainties about the emissions issue involving Fiat Chrysler could the key reason why FCAU stock remained weak in 2Q17.
Key technical levels
Just like peers GM and Ford, Fiat Chrysler stock also has witnessed mixed movement in June. An immediate resistance lies near $11.25, while on the downside, the stock could find immediate support near $10.95.
Any violation of resistance near $11.25 could attract renewed buying in Fiat Chrysler stock this week. In the next part of this series, we’ll learn about Tesla’s recent price movement and its important support and resistance levels for this week.