Technical analysis of FCAU stock
We’ve already discussed how Fiat Chrysler Automobiles’ (FCAU) forward valuation multiples show that it is trading lowest among direct peers (XLY) like General Motors (GM), Ford Motor (F), and Toyota Motor (TM).
But while valuation multiples can help investors, it’s also important for investors to look at key technical support and resistance levels, which help investors refine their entries and exits from a company’s stock.
Key technical levels
As of December 26, 2017, Fiat Chrysler stock has been trading at $18.50 on a bullish note. The stock has delivered an impressive return of over 103% in 2017 so far, and it was hovering right below its all-time high at $18.56.
In October 2017, the stock price had been hovering within the narrow range of $16.93–$18.00, but as it heads into 2018, FCAU’s all-time high of $18.56 should act as immediate resistance. Any violation of this level could attract fresh buying in Fiat Chrysler stock.
On the downside, no major support level lies above the $16.90 level. Only an early drop below this support area could turn investor sentiments negative.
As of December 26, FCAU’s 50-day SMA (simple moving average) was at $17.50, which was lower than the stock’s price and confirms the positive trend we’ve been seeing.
At the same time, FCAU’s 14-day RSI (relative strength index) level was at 61.4—above the line of equilibrium of 50. This suggests a minor underlying strength in the momentum.
In the next final part of this series, we’ll look at the analysts’ recommendations for Fiat Chrysler stock.